Consider the market for ABC Company's stock. What should happen to the stock for ABC Company after a merger with a highly successful supply firm is announced?
A) The demand for the stock would shift to the left.
B) The demand for the stock would shift to the right.
C) The supply of the stock would shift to the left.
D) The supply of the stock would shift to the right.

Question

Quizplus · Accepted Answer

A highly successful supply firm merger would likely be seen as positive news for ABC Company, which could lead to an increase in demand for the stock from investors hoping to capitalize on the potential benefits of the merger. This would shift the demand curve for the stock to the right, resulting in an increase in the stock price.

Consider the Market for ABC Company's Stock