Suppose the quantity demanded for a security is
 BD = 150 ? 0.1b,and the quantity supplied of the security is
 BS = 50 + 0.1b,where b is the price of the security in dollars. Suppose that the supply curve shifts to
 BS = 75 + 0.1b.The equilibrium price of the security

A. rises by $50.
B. rises by $125.
C. falls by $125.
D. falls by $50.


Answer: C

Business

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