World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs.We would expect that this would
A)raise the demand for existing shares of the stock,causing the price to rise.
B)decrease the demand for existing shares of the stock,causing the price to fall.
C)raise the supply of the existing shares of stock,causing the price to rise.
D)raise the supply of the existing shares of stock,causing the price to fall.

Question

Quizplus · Accepted Answer

The development of a way to speed up deliveries and reduce costs is likely to increase the demand for the company's services, leading to an increase in its revenue and profits. This, in turn, can lead to an increase in the demand for the company's stock as investors become more optimistic about its future prospects. The increase in demand for the stock can cause its price to rise.

World Wide Delivery Service Corporation Develops a Way to Speed