If the initial offer price is too low,
1) supply will exceed demand
2) demand will exceed supply
3) the price of the security will rise
4) the price of the security will decline
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

If the initial offer price is too low,​
1) supply will exceed demand
2) demand will exceed supply
3) the price of the security will rise
4) the price of the security will decline
A)​1 and 3
B)​1 and 4
C)​2 and 3
D)​2 and 4

Quizplus · Accepted Answer

When the initial offer price is too low, demand will exceed supply because more people are willing to buy the security at the lower price, and as a result, the price of the security will likely rise due to increased demand.

If the Initial Offer Price Is Too Low,​

If the Initial Offer Price Is Too Low,