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Suppose the Quantity Demanded for a Security Is BD =

Question 105

Multiple Choice

Suppose the quantity demanded for a security is BD = 150 ? 0.1b,
And the quantity supplied of the security is
BS = 50 + 0.1b,
Where b is the price of the security in dollars.Suppose that the supply curve shifts to
BS = 75 + 0.1b.
The equilibrium price of the security


A) rises by $50.
B) rises by $125.
C) falls by $125.
D) falls by $50.

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