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

question 21

True/False

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Although technically owning a share means the shareholder holds a share of everything that the firm owns, but in actuality he is only entitled to a share of the company's earnings.

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Definitions:

Surpluses

Surpluses occur when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.

Rationing Function

The process by which the market system allocates goods and services to consumers when supply is limited.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity can control prices or influence the market significantly.