Assume a Stock's Price Remains Relatively Stable While the Money

question 60

Multiple Choice

Assume a stock's price remains relatively stable while the money flow becomes highly positive. Which one of the following is most expected given this scenario?

• A)price decrease
• B)stable price
• C)price increase
• D)increasing trading volume
• E)decreasing trading volume

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Definitions:

Price

The monetary contribution expected, required, or made for acquiring something.

Most Inelastic

Describes goods or services with a demand that is least responsive to price changes; price changes have little effect on the quantity demanded.

Quantity Demanded

The entire quantity of a product or service that buyers are ready and capable of buying at a certain price point.

Price

The amount of money required to purchase a good or service, determined by various factors including supply, demand, production cost, and competition.