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 quantity of the security

A. rises by 12.5.
B. rises by 2.5.
C. falls by 2.5.
D. falls by 12.5.


Answer: A

Business

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