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Qusetion: On January 27, 2011, the price of Ford Motor Company stock hit an almost 10-year high at $18.79 per share. (Two years prior, in January 2009, Ford stock was trading for about a tenth of that price.)

a. Suppose that on January 27, 2011, you owned 10,000 shares of Ford stock (a small fraction of the almost 3.8 billion shares). Suppose you offered to sell your stock for $18.85 per share, just slightly above the market price. Would you have been successful?

b. What if, on January 27, 2011, you wanted to sell your 10,000 shares of Ford stock but you reduced your asking price to $18.75 per share? Would you have found a lot of willing buyers?

c. What do your answers for parts a and b tell you about the demand curve that you, as an individual seller of Ford stock, face?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92653060

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