Joe Edwards Purchased 150 Shares of XYZ at $100 Per

question 10

Essay

Joe Edwards purchased 150 shares of XYZ at $100 per share. Currently, the stock is selling at $120. If he wants to be assured of a profit of at least $4,050, what type of order should he place and at what price per share?

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Definitions:

Elasticity

The degree to which the quantity demanded or supplied of a good or service changes in response to a change in price.

Midpoint Method

A technique used in economics to calculate the percentage change in a variable by dividing the change by the average value of the initial and final values.

Twinkies

A popular snack cake in the United States, characterized by its golden sponge cake exterior and creamy filling.

Elasticity

A measure in economics that indicates how the quantity demanded or supplied of a product changes in response to a change in price.