For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of each firm's shares demanded equals the quantity supplied. Why, then, do the prices of stock shares change? O Prices change in reaction to a mismatch between quantity demanded and quantity supplied. Prices are set at a different level each day by Wall Street traders. O Prices change due to the whims of those selling stock shares. O Actually, the prices of stock shares seldom change.
For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of each firm's shares demanded equals the quantity supplied. Why, then, do the prices of stock shares change? O Prices change in reaction to a mismatch between quantity demanded and quantity supplied. Prices are set at a different level each day by Wall Street traders. O Prices change due to the whims of those selling stock shares. O Actually, the prices of stock shares seldom change.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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