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

Question 1

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The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2 -When the price of a stock rises significantly higher than what can be justified by the dividends the firm can be expected to pay in the future, a(n) _____ is said to have occurred. A) stock market crash B) arbitrage C) stock market bubble D) bull run E) short sale
-When the price of a stock rises significantly higher than what can be justified by the dividends the firm can be expected to pay in the future, a(n) _____ is said to have occurred.


A) stock market crash
B) arbitrage
C) stock market bubble
D) bull run
E) short sale

Correct Answer:

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