Mo asked in Social ScienceEconomics · 8 years ago

Macroconomics question?

Desperately need help with Economics homework?

The problem I can't seem to figure out is....

Each of the following events will affect the stock of the company involved. For each company, please predict the effect on the demand and supply of its stock shares, as well as on its stock price.

Ford Motor Company announces that it will have to decrease profit expectations for the current year, as an increase in gas prices has led many people to hold off on buying a new car.

Demand of the stock will...(Increase, Decrease, or Not Change) Supply of the stock will....(Increase, Decrease, or Not Change) Price of the stock will....(Increase, Decrease, or Not Change)

Due to a successful advertising campaign using the \'Pepsi Challenge\', PepsiCo announces that sales of its signature soft drink are higher than expected

Demand of the stock will...(Increase, Decrease, or Not Change) Supply of the stock will....(Increase, Decrease, or Not Change) Price of the stock will....(Increase, Decrease, or Not Change)

On the same day you buy a share of Google Inc. stock, the U.S. Government announces an increase in interest rates, making bonds a more attractive option for investors.

Demand of the stock will...(Increase, Decrease, or Not Change) Supply of the stock will....(Increase, Decrease, or Not Change) Price of the stock will....(Increase, Decrease, or Not Change)

Starbucks Coffee Company informs the public that profits this year are larger than previously predicted, due to its expansion into the retail ice cream and chocolate businesses.

Demand of the stock will...(Increase, Decrease, or Not Change) Supply of the stock will....(Increase, Decrease, or Not Change) Price of the stock will....(Increase, Decrease, or Not Change)

Thanks I've tried everything..

3 Answers

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  • 8 years ago
    Favorite Answer

    1- Ford Motor Company... Demand for stock decreases. Supply of stock increase. Price of stock Increases

    2- Pepsi Challenge... Demand for stock Increases. Supply of stock increases. Price of stock Not changed

    3- Google Inc... I'm stumped on this one. But I will try anyway. Demand for stock Increases Supply increases Price decreases

    4- Starbucks Coffee... Demand Increases Supply decreases Price decreases

    Now do not take everything word for word I am only human and I have only studied economics for 3 years but here's how I found the answers

    1- Using law of demand... When price decreases demand increases and when price increases demand decreases

    2- Using law of supply... When price increase supply increase when price decrease supply decrease

    Hope I help. It was quite hard

  • 5 years ago

    With penny stocks you can make 30 percent or 40 percent profit in a few days. Learn here https://tr.im/z1EXT

    The best strategy, if you do have experience type of return on a penny stock, is to sell the stock quickly.

    Of course, it’s easier said than done. The natural thing to want when you see an increase in stock price is to hold the stock and hope for an even larger increase.

  • 4 years ago

    This was NOT helpful at ALL. Please REMOVE ASAP

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