Consider the market for ABC Company's stock. What shouldhappen to the stock for ABC Company after a merger with ahighly successful supply firm is announced?
A)The demand for the stock would shift to the left.
B)The demand for the stock would shift to the right.(True Answer )Correct
C)The supply of the stock would shift to the left.
D)The supply of the stock would shift to the right.

Question

Quizplus · Accepted Answer

When a highly successful supply firm merges with ABC Company, investors are likely to expect improved profitability and growth potential for the company, leading to an increase in demand for the stock. This increased demand would shift the demand curve for the stock to the right.

Consider the Market for ABC Company's Stock