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Consider two investors (A and B) with the following demand curves for a stock: A: p = 100 - q B: p = 150- =
Consider two investors (A and B) with the following demand curves for a stock:
A: p = 100 - q
B: p = 150- = 2q
1) A a price of $50, how much will A and B Purchase?
2) If the price falls to $30, who will increase their holdings more? Explain
3) On this basis, which investor seems to be more overconfident?
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