Refer to the Information Provided in Figure 3

question 118

Multiple Choice

Refer to the information provided in Figure 3.14 below to answer the following questions. Figure 3.14
-Refer to Figure 3.14. A decrease in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to

• A) Point A on supply curve S2.
• B) Point B on supply curve S2.
• C) supply curve S3.
• D) supply curve S1.

---

Definitions:

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying asset or security.

Call Options

Call options are financial contracts that give the buyer the right, but not the obligation, to buy a specified amount of an underlying asset, at a set price, within a specified period.

Put Options

Financial contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time frame.

Stock Price

The current price at which a share of a company is bought or sold on the stock market.