On Monday, the change in the value of one share of a company's stock is [tex]$2.85. On Tuesday, the value of one share of the company's stock changes again. Which of these describes a situation that would bring the total change for the two days to $[/tex]0?

A. A share value increase of [tex]$2.85 on Tuesday
B. A share value decrease of $[/tex]2.85 on Tuesday
C. A share value decrease of [tex]$5.70 on Tuesday
D. A share value increase of $[/tex]5.70 on Tuesday



Answer :

Let's consider the changes in the value of one share of the company's stock over the two days, focusing on bringing the total change to [tex]$0. 1. Monday's Change: - The value of one share increased by $[/tex]2.85 on Monday.

2. Total Change Over Two Days:
- We need the total change over two days to be [tex]$0. This means that the change on Tuesday must counteract the change on Monday. To achieve a total of $[/tex]0 change over the two days, we need to balance out Monday's increase with an equivalent decrease on Tuesday. Let's evaluate each option:

- Option A: A share value increase of [tex]$2.85 on Tuesday - If the value increases by $[/tex]2.85 again on Tuesday, the total change over the two days would be:
[tex]\[ 2.85 + 2.85 = 5.70 \][/tex]
- This would result in a positive total change of [tex]$5.70, not zero. - Option B: A share value decrease of $[/tex]2.85 on Tuesday
- If the value decreases by [tex]$2.85 on Tuesday, the total change over the two days would be: \[ 2.85 - 2.85 = 0 \] - This results in a total change of $[/tex]0, which is exactly what we want.

- Option C: A share value decrease of [tex]$5.70 on Tuesday - If the value decreases by $[/tex]5.70 on Tuesday, the total change over the two days would be:
[tex]\[ 2.85 - 5.70 = -2.85 \][/tex]
- This would result in a negative total change of [tex]$2.85, not zero. - Option D: A share value increase of $[/tex]5.70 on Tuesday
- If the value increases by [tex]$5.70 on Tuesday, the total change over the two days would be: \[ 2.85 + 5.70 = 8.55 \] - This would result in a positive total change of $[/tex]8.55, not zero.

Conclusively, option B, a share value decrease of [tex]$2.85 on Tuesday, is the correct choice to bring the total change for the two days to $[/tex]0.

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