The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 90

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-Which of the following factors affects the quantity demanded of a company's stock?

• A)The prices of other companies' stocks
• B)The price of the company's stock
• C)The returns on other possible investments
• D)Expectations regarding stock price movements
• E)Income of the investors

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Definitions:

Unfavourable

Describes an outcome or condition that is not beneficial or desired, often used in financial contexts to indicate underperformance.

Favourable

A term usually used in finance and accounting to refer to variances or differences that are beneficial to a company's financial health.

Flexible Budget Formula

A budget that adjusts to changes in the volume of activity, helping companies to better manage costs.

Fixed Overhead Costs

Expenses that do not change with the level of output within a certain range of activity, such as rent, salaries, and insurance.