Which factor best shows why the demand for dot-com stocks created an unstable economic situation?

A. Low inflation led investors to buy more shares than necessary.
B. The demand for subprime mortgages increased at the same time.
C. Investors drove prices higher than the worth of the stock.
D. Large companies like Google controlled too much market share.

what's the answer though?

The answer is C: Investors drove prices higher than the worth of the stock.

never mind there's another website.

what is the answer?

C.

Yes, that's correct. The demand for dot-com stocks created an unstable economic situation because investors were willing to pay high prices for stocks, even though the companies often had little revenue or profit. This led to a bubble in the market, where prices were artificially inflated. When the bubble burst, many investors lost a significant amount of money.

I'll be glad to check your answer.