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

-If the number of people who want to sell off stocks are higher than those who want to buy it, the stock prices move up.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-If the number of people who want to sell off stocks are higher than those who want to buy it, the stock prices move up.

Quizplus · Accepted Answer

If the number of people who want to sell off stocks are higher than those who want to buy it, the stock prices move down as the supply will be higher than the demand, leading to a decrease in price to adjust the market equilibrium.

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