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The Figure Given Below Shows the Demand [D and D']

question 7

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The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2    -The price of the Amazon.com stock was very high in the 1990s although the company never earned an economic profit. This demonstrates that: A) investors' expectations of future profits alone influence the stock prices. B) the performance of a firm has no bearing on stock prices. C) stock markets are highly inefficient because investors vary in their risk appetites. D) speculation based on wishful thinking by investors have a bearing on the stock prices. E) investor expectations are generally rational.
-The price of the Amazon.com stock was very high in the 1990s although the company never earned an economic profit. This demonstrates that:

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