Assume your customer has 300 shares of common stock with a current market value of 21.25 and 20 first mortgage bonds at par. both increase 3/4 of a point. what is the increase in the value of his holdings?

$375

Explanation:

1 point on stock is equal to $1

1 point on bond is equal to $10

3/4 point on stock is equal to $0.75

3/4 point on bond is equal to $7.5

Since the increase is 3/4 of a point, so the overall increase in the value of bond and shares based on the number of shares and bonds given in question shall be calculated as follows:

Total increase in the value of holding=0.75*300+20*7.5=$375

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.