What is called the price that a potential buyer is willing to pay for a security ?
Correct answer: A. Bid
- A. Bid
- B. Offer price
- C. Quote price
- D. None of these
Explanation
A bid is the price a prospective buyer is prepared to pay for a security. The offer or ask price is the amount a seller is prepared to accept, making it the main contrasting term.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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