If people expect the price of a stock to rise in future, the ...

[bucstennis@aim.com]

If people expect the price of a stock to rise in future, the demand curve for the stock:
 a. becomes positively sloped.
  b. shifts to the right.
  c. becomes horizontal.
  d. becomes vertical.
  e. shifts to the left.

Question 2

In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:
 a. consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium.
  b. to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased.
  c. to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available.
  d. to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased.
  e. the marginal utilities among luxury goods are always equal among certain high-income earners.

[millet]

Answer to Question 1

b

Answer to Question 2

d