When Demand Is Inelastic

question 56

Multiple Choice

When demand is inelastic

• A)The percentage change in price is greater than the percentage change in quantity demanded.
• B)Buyers are very sensitive to changes in price.
• C)The product in demand has many substitute goods.
• D)The percentage change in quantity demanded is greater than the percentage change in price.

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Definitions:

Crossover Point

The point at which two different financial scenarios yield the same result or where an investment's cost and benefits intersect.

Cash Inflows

Money or funds received by a business during a period of time from various sources including sales, investments, and financing.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income generated by an investment divided by its initial cost.