If the Price of Hamburger Increases, It Would Probably Result

question 189

Multiple Choice

If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.

• A) a decrease
• B) an increase
• C) no change
• D) random fluctuations

---

Definitions:

Growth Rate

The rate at which an economic variable, such as the Gross Domestic Product (GDP), a company's profits, or an investment's value, increases over a specified period of time.

Market Capitalization Rate

The expected return on an investment in the market, often used in the valuation of stocks and to determine a company's cost of equity.

PVGO

Present Value of Growth Opportunities; a model that estimates the value of a firm's shares excluding its current earnings, focusing on future growth.

P/E Ratio

Price-to-earnings ratio, a valuation metric for determining the relative worth of a company's shares by dividing stock price by earnings per share.