Analyzing the price changes on buying

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Reference no: EM1346638

Consider two investors (A and B) with the following demand curve for a stock:

A: p=100-q
B: p=150-2q

a) At a price of $50, how much will A and B purchase?

b) If the price falls to $30, who will increase their holdings more?

c) On this basis, which investor seems to be more overconfident?

Reference no: EM1346638

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