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Author Question: If the current shareholders begin to believe that the prices of the stocks are likely to rise in the ... (Read 26 times)

c0205847

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on: Jun 30, 2018
If the current shareholders begin to believe that the prices of the stocks are likely to rise in the future, the supply curve of shares will:
 a. shift to the right.
  b. become perfectly elastic.
  c. slope downward.
  d. shift to the left.
  e. become perfectly inelastic.

Question 2

Jen spent her weekly allowance of 110 on clothes and cosmetics. Assume that she had allocated 100 to shoes and 10 to lipsticks and is in equilibrium. What can you conclude from her purchase decisions?
 a. She likes shoes ten times as much as she likes lipsticks
  b. Jen liked the last pair of shoes ten times as much as the last tube of lipstick
  c. Jen purchased hundred pairs of shoes for each tube of lipstick
  d. She likes lipsticks ten times as much as she likes shoes
  e. She purchased one pair of shoes for each tube of lipstick


taylorsonier

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

b


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