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

question 66

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock. Figure 16.2 According to Figure 16.2, what sort of change in the market environment would increase the supply of stocks from S to S' and decrease the demand from D to D'?

• A)A perceived increase in the firms' expected future profits
• B)A new perception that the economy is about to enter a period of expansion
• C)News revealing that stocks prices will increase in the future
• D)News that the economy is likely go into a recession soon
• E)A perceived improvement in the firms' performance compared to the last year

---

Definitions:

Power Resource Theory

Holds that the distribution of power between major classes partly accounts for the successes and failures of different political parties.

Political Parties

Organized groups of people with similar political ideologies and objectives that seek to influence public policy and government by getting their candidates elected to office.

Class

A system of ordering society wherein people are divided into sets based on perceived social or economic status.

Distribution of Power

The way authority and control are spread across individuals or groups within an organization or society.