The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-An exception to weighting stocks by market cap is the Dow Jones Industrial Average, which uses the stock price relative to the sum of the prices of all the stocks in the index.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-​An exception to weighting stocks by market cap is the Dow Jones Industrial Average, which uses the stock price relative to the sum of the prices of all the stocks in the index.

Quizplus · Accepted Answer

The Dow Jones Industrial Average (DJIA) weights its components based on their stock prices rather than their market capitalizations, making it a price-weighted index.

The Figure Given Below Shows the Demand [D and D']