Which of the Following Assumptions Regarding Price Movements Summarized by Levy

question 63

Multiple Choice

Which of the following assumptions regarding price movements summarized by Levy (1966) are controversial?

• A) Supply and demand determine the market value of any good or service.
• B) Supply and demand are governed by numerous rational and irrational factors.
• C) The prices for individual securities and the overall value of the market tend to move in trends.
• D) All of the above.
• E) None of the above.

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Definitions:

Automatic

Processes or actions that occur without conscious thought or intention, often as a result of learning or habituation.

Attribution

The process by which individuals explain the causes of behavior and events, either attributing them to internal dispositions or to external situations.

Social Perception

The process by which individuals form impressions of and make inferences about other people and social situations.

Physiological Response

Automatic reactions of the body to a stimulus, such as changes in heart rate, breathing, or skin temperature.