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 16.2 According to Figure 16.2, what will be a necessary result of a simultaneous increase in the supply of stocks from S to S' and decrease in the demand from D to D'?

A) A decrease in the price of the shares
B) An increase in the price of the shares
C) An increase in the amount of shares offered for sale
D) An increase in the volatility of the share
E) A decrease in the profits earned by the firms

Correct Answer:

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