Question: In the market for Amazon.com stock, explain how each of the following events, ceteris paribus, would affect the demand curve for the stock and the
In the market for Amazon.com stock, explain how each of the following events, ceteris paribus, would affect the demand curve for the stock and the stock’s price.
a. The interest rate on U.S. government bonds rises.
b. People expect the interest rate on U.S. government bonds to rise, but it hasn’t yet risen.
c. Google announces that it will soon start competing with Amazon in the market for books, DVDs, and everything else that Amazon sells.
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