A Support Level Is ________

question 66

Multiple Choice

A support level is ________.

• A) a level beyond which the market is unlikely to rise
• B) a level below which the market is unlikely to fall
• C) an equilibrium price level justified by characteristics such as earnings and cash flows
• D) the peak of a market wave or cycle

---

Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in price for one leads to an increase in demand for the other.

Good Faith

A principle of honesty and sincerity of intention in one's actions, especially in contractual or negotiation contexts.

Implied Warranty of Merchantability

A legal presumption that a product will meet the reasonable expectations of quality and performance for goods of its kind.

Bicycle Merchant

A retailer specialized in the sale and service of bicycles and related accessories.