The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock. Figure 30.2 According to Figure 30.2, what will be a necessary result of a simultaneous increase in the supply of stocks from S to S'and decrease in the demand from D to D'?

Question

Quizplus · Accepted Answer

When the supply of a product increases while the demand for it decreases, the price of the product tends to fall due to an excess supply. Therefore, in this scenario, the necessary result would be a decrease in the price of the shares, as indicated by the movement from point P0 to P1 along the horizontal axis.

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