Suppose the Government Finds a Major Defect in One of a Company's

question 62

Multiple Choice

Suppose the government finds a major defect in one of a company's products and demands that the product be taken off the market. We would expect that the

• A)supply of existing shares of the stock and the price will both rise.
• B)supply of existing shares of the stock and the price will both fall.
• C)demand for existing shares of the stock and the price will both rise.
• D)demand for existing shares of the stock and the price will both fall.

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Definitions:

Affiliation

A psychological and social process regarding the connection, association, or relationship between individuals or groups.

Be With Other People

The act of spending time in the company of others to engage in social activities, communication, or for the purpose of establishing relationships.

Belong

The innate human need to be an accepted member of a group, whether it's family, friends, or a larger social context.

Affiliation Motive

The innate need to form and maintain interpersonal relationships and feel connected to others.