(Answered) Consider two investors a and b with the following inverse

Management Studies

Consider two investors (A and B) with the following inverse demand functions for a stock:

p = 100 - q

p = 150 - 2q,

where p is the price of the stock and q the quantity demanded.

1. At a price of 50, how much will A and B purchase of the stock, respectively?

2. If the price falls to 30, how will the two investors adjust their holdings?

3. On this basis, which investor seems to be the most overconfident of the two?

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