Suppose the Quantity Demanded for a Security Is B_D =

question 10

Multiple Choice

Suppose the quantity demanded for a security is B_D = 150 ? 0.1b,
And the quantity supplied of the security is
B_S = 50 + 0.1b,
Where b is the price of the security in dollars.Suppose that the supply curve shifts to
B_S = 75 + 0.1b.
The equilibrium quantity of the security

• A)rises by 12.5.
• B)rises by 2.5.
• C)falls by 2.5.
• D)falls by 12.5.

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Definitions:

Capital Deficiency

A situation where a company's total capital is less than the par value of its capital stock.

Noncash Assets

Items of value owned by a business or individual that are not in the form of cash, such as real estate, equipment, and patents.

Income Ratios

Financial metrics that examine a company's income or profit relative to sales, assets, equity, or other financial metrics, providing insight into the efficiency and profitability of the company.

Capital Balances

Reflects the amount of capital that each partner or shareholder has contributed to a partnership or corporation, or their ownership stake.