All else equal,when people become more optimistic about a company's future,the
A)supply of the stock and the price will both rise.
B)supply of the stock and the price will both fall.
C)demand for the stock and the price will both rise.
D)demand for the stock and the price will both fall.

Question

Quizplus · Accepted Answer

When people become more optimistic about a company's future, they will have a higher demand for the stock because they believe it will perform well. This increase in demand will put upward pressure on the stock price. Therefore, the demand for the stock and the stock price will both rise.

All Else Equal,when People Become More Optimistic About a Company's