If Demand Changes Considerably, with a Small Change in Price

question 81

Multiple Choice

If demand changes considerably, with a small change in price, the demand is said to be ________.

• A) unit elastic
• B) elastic
• C) inelastic
• D) marginal
• E) strained

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Definitions:

Depreciation Tax Shield

A deduction that reduces taxable income due to the depreciation of assets, thereby lowering one's tax liability.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applied to income or profit.

CCA Class

Refers to the classification of depreciable properties under the Canadian Capital Cost Allowance system for tax purposes.

Net Advantage To Leasing

An analytical tool used to evaluate the financial benefits of leasing equipment or property versus purchasing it, taking into account all associated costs and savings.