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Suppose the Quantity Demanded for a Security Is BD =

Question 10

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 quantity of the security


A) rises by 12.5.
B) rises by 2.5.
C) falls by 2.5.
D) falls by 12.5.

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