When the price of a stock rises significantly higher than what can be justified by the dividends the firm can be expected to pay in the future, a(n) _____ is said to have occurred
a. stock market crash
b. arbitrage
c. stock market bubble
d. bull run
e. short sale
c
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The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm has excess capacity of
A) 4 units. B) 8 units. C) 16 units. D) $10.
Which one of the following could account for an increase in the market clearing price of portable power banks?
A. an increase in demand along with a decrease in supply B. an increase in supply along with a decrease in demand C. an increase in supply of portable power banks D. a decrease in demand for portable power banks
According to the above figure, what will the price level be in the new long-run equilibrium?
A. 110 B. Less than 100 C. 100 D. 115
A negative income elasticity of demand indicates that the product
A. is a complementary good. B. is an inferior good. C. is a normal good. D. is a substitute good.