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

question 69

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock. Figure 30.2 According to Figure 30.2, what will be a necessary result of a simultaneous increase in the supply of stocks from S to S' and decrease in the demand from D to D'?

• A)A decrease in the price of the shares
• B)An increase in the price of the shares
• C)An increase in the amount of shares offered for sale
• D)An increase in the volatility of the share
• E)A decrease in the profits earned by the firms

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