2. You read about new technology that keeps clothes clean for a long time. You should infer that: *a. Stock prices for laundry detergent companies will eventually go down because demand for laundry detergent will go down.b. Stock prices for laundry detergent companies will eventually go up because traders tend to initially overreact to new technology.c. Nothing will change because new technology rarely affects stock prices.d. This information is already reflected in current stock prices because the new technology is public knowledge.
Question
- You read about new technology that keeps clothes clean for a long time. You should infer that: *a. Stock prices for laundry detergent companies will eventually go down because demand for laundry detergent will go down.b. Stock prices for laundry detergent companies will eventually go up because traders tend to initially overreact to new technology.c. Nothing will change because new technology rarely affects stock prices.d. This information is already reflected in current stock prices because the new technology is public knowledge.
Solution
Based on the information provided, we can infer that the correct answer is b. Stock prices for laundry detergent companies will eventually go up because traders tend to initially overreact to new technology.
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