If the current shareholders begin to believe that the prices of the stocks are likely to rise in future,the supply curve of shares will:

Question

Quizplus · Accepted Answer

If shareholders believe that the price of stocks is likely to rise in the future, they will hold on to their shares and not sell them. As such, the supply of shares in the market will decrease, resulting in a shift of the supply curve to the left.

If the Current Shareholders Begin to Believe That the Prices