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

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

-According to Figure 17.2, 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 previous year

Correct Answer:

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