If the Percentage Change in the Quantity Demanded Is Not

question 52

Multiple Choice

If the percentage change in the quantity demanded is not zero, but is less than the percentage change in the price, demand is

• A) elastic.
• B) unit elastic.
• C) perfectly elastic.
• D) inelastic.
• E) perfectly inelastic.

---

Definitions:

Relevant Financial Information

Financial data or insights that can inform decision-making processes, typically relating to a company's performance, market trends, or economic conditions.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Efficient Market Hypothesis

A theory that suggests all existing information is fully reflected in stock prices, implying that stocks always trade at their fair value.

Firm-specific Variables

Factors that affect an individual company's stock price, operational efficiency, profitability, and risk profile, distinct from market-wide influences.