Question
In: Finance
One thing moving the US equity markets is supply and demand, expatiate on this.
One thing moving the US equity markets is supply and demand, expatiate on this.
Solutions
Expert Solution
United State equity market are driven by twin factors of supply and demand and which helps in the price discovery of various stocks in the market.
Stock Market are always driven by price and volume so only such stocks are always preferred who have large volume in stock market as it will help in generation of fair price because there are huge number of buyers and sellers who are participating in the United State Equity Market from all across the globe and they help in discovery of fair prices of various shares through active participation.
when there is higher demand for a stock, it can be seen through movement in its prices and it is going upward and when there is a lower demand of the share, it can be seen that there are no buyers of this shares and they are continuously going downwards.
Prices of shares like Tesla which have been continuously discovered by active participation of various bullish investors on the upside, and they want to buy the stock anyhow whereas there are various stocks like airline industry stocks which investors are willing to offload at any prices and they are participating on the shorting side.
jeff jeffy answered 1 year agoRelated Solutions
Using Supply and Demand to Analyze Markets — End of Chapter Problem Consider the demand for...
Using Supply and Demand to Analyze Markets — End of
Chapter Problem
Consider the demand for broadband internet service, given as
??=224−4?. Q is the number of subscribers in a given area (in
hundreds), and P is the price in dollars per month. This
demand relationship is illustrated in the diagram below. Assume the
price of broadband service is $25 per month.
a. What will the total number of subscribers be
at a price of $25? ______ subscribers
b. What...
Using Supply and Demand to Analyze Markets — End of Chapter Problem The annual demand for...
Using Supply and Demand to Analyze Markets — End of
Chapter Problem
The annual demand for full-spectrum LED light bulbs in
Fairbanks, Alaska, is estimated to be ??=20,000−1,000?. The supply
is estimated to be ??=−12,000+3,000?.
a. What is the equilibrium price of
full‑spectrum LED light bulbs? ____ dollars
b. What is the equilibrium quantity of
full‑spectrum LED light bulbs? _____ customers
c. What is consumer surplus? ____ dollars
d. What is producer surplus? _____ dollars
e. What is the total...
As markets become more competitive what happens to the demand and supply curve? the demand curve...
As markets become more competitive what happens to the demand
and supply curve?
the demand curve facing the firm steepens
the demand curve facing the firm flattens
the supply curve facing the firm steepens
the demand curve facing the firm remains the same
The Covid crisis has disrupted many markets both on the supply and demand sides. Identify markets...
The Covid crisis has disrupted many markets both on the supply
and demand sides. Identify markets that have been negatively
impacted on the supply side. What happened? What caused the
disruption? Have there been surpluses or shortages in these
markets? Have any markets thrived? If so, which markets have done
well and why?
Note: In order to have a market, there must be both
buyers and sellers. Demand reflects the behavior of buyers. Supply
represents the behavior of producers and...
Using Supply and Demand to Analyze Markets — End of Chapter Problem The Reinheitsgebot is a...
Using Supply and Demand to Analyze Markets — End of
Chapter Problem
The Reinheitsgebot is a set of laws established in the 1500s
that regulate the production and sale of beer in Germany. Among its
provisions, the edict set maximum prices that brewers could charge
at various times of the year: "From Michaelmas to Georgi, the price
for one [Bavarian Liter] is not to exceed one Pfennig Munich
value." Cheap beer — this must be a great thing for consumers....
Using Supply and Demand to Analyze Markets — End of Chapter Problem The Reinheitsgebot is a...
Using Supply and Demand to Analyze Markets — End of
Chapter Problem
The Reinheitsgebot is a set of laws established in the 1500s
that regulate the production and sale of beer in Germany. Among its
provisions, the edict set maximum prices that brewers could charge
at various times of the year: "From Michaelmas to Georgi, the price
for one [Bavarian Liter] is not to exceed one Pfennig Munich
value." Cheap beer — this must be a great thing for consumers....
Using the principles of supply and demand as applied to labor markets, what are the effects...
Using the principles of supply and demand as applied to labor
markets, what are the effects of placing a universal binding
minimum wage on a labor market that is otherwise perfectly
competitive? What are the effects if the minimum wage is not
universal (i.e., if there is a sector of the labor market not
covered by the minimum wage – such as waiters and waitresses)? In
both cases briefly discuss potential efficiency effects.
The labor supply and demand equations in Mexico and the US are Ndmex = 140 –...
The labor supply and demand equations in Mexico and the US
are
Ndmex = 140 – 2 Wmex and Nsmex =
80
NdUS = 600 – 4 WUS and NsUS = 260
(Notice: To make the exercise
simple, we are assuming that the labor supply curves are perfectly
vertical at 60 in México and at 260 in the US).
where Ndmex and
NdUS are the number of workers demanded in Mexico and
the US (in millions of workers). Wmex and...
Rates of Return 1926-2013 World Portfolios US Markets Year World Equity Return in US Dollars World...
Rates of Return 1926-2013
World Portfolios
US Markets
Year
World Equity Return in US Dollars
World Bond Return in US Dollars
Small Stocks
Large Stock
Long-Term T-Bonds
T-Bills
Inflation
Real T-bill Rates
1926
25.24
8.10
-8.91
12.21
4.54
3.19
-1.12
4.36
1927
23.15
9.62
33.99
35.99
8.11
3.12
-2.26
5.50
1928
28.62
2.44
51.46
39.29
-0.93
3.56
-1.16
4.77
1929
-12.56
3.45
-49.25
-7.66
4.41
4.75
0.59
4.14
1930
-22.6
6.04
-48.04
-25.90
6.22
2.41
-6.40
9.41
1931
-39.94
-12.32...
Suppose the coffee market in the US is given by the following equations for supply and demand:
Suppose the coffee market in the US is given by the following
equations for supply and demand: QS = 9 + 0.5p QD = 12 − p where Q
is the quantity in millions of tons per year and p is the price per
pound.(a) Calculate the equilibrium price and quantity of coffee.(b) At the equilibrium price, what is the price elasticity of
demand?(c) Suppose a tax of $0.75 is imposed on coffee producers.
Calculate the new equilibrium price and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
- With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
- Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
- The following costs were incurred for the single product produced during the first year of operations...
- Non-constant growth model: Do=$2.00 required return on equity= 5% g= 9% n=1,2 g=7% n=3,4 g=3% n=5...
ADVERTISEMENT