The downturn in the prices of shares on stock markets is a highlight of

a

efficient allocation of resources

b

the invisible hand

c

the regulatory nature of the market

d

consumer rationality

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Explanation

Correct Option
c

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Discussions (3)

Iember_codes
3 years ago

Invisible hand refers to the self-regulatory nature of the market which is supply and demand and the downturn or upturn of share price is usually caused by invisible hand.
The regulatory nature of the market like the SEC( Securities and exchange Commission) can lead to a downturn in prices but this is not always true, because even in unregulated markets there is still downturn of share price. The most appropriate answer is B

Not convinced? Even when the regulators of the market make certain policies, it depends on how the shareholders will react and act on their best interest - this brings us back to the invisible ✋, their reaction will affect the price of shares.

Paullen
10 years ago

Explanation: Changes in the prices of shares in stock market are usually caused by

market forcs of demand and supply which is also referred to as invincible hand.

Paullen
10 years ago

The ans is B. Invisible hand

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