The demand curve for shares of a stock is typically
a. downward sloping, because people calculate present value according to different expectations and attitudes toward risk
b. vertical, because only a fixed number of shares of stock are available
c. horizontal, because everyone values the stock according to its present value
d. upward sloping, because a higher stock price signals to potential shareholders that the firm is more valuable
e. horizontal, because no one is willing to pay more than the market price
A
You might also like to view...
The monopolist's supply curve
A) doesn't exist. B) is the region of its marginal cost curve above average cost. C) is identical to the demand curve. D) is the region of its marginal cost curve that lies above the marginal revenue curve.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
The manufacturer of the over-the-counter pain reliever would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in B. decrease C. increase D. experience an uncertain change in