The Ratio of the Percentage Change in Quantity Demanded to the Percentage

question 5

Multiple Choice

The ratio of the percentage change in quantity demanded to the percentage change in price is called

• A)Price elasticity of demand
• B)Price elasticity of supply
• C)Income elasticity of demand
• D)Income elasticity of supply

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Definitions:

Divestiture

The opposite of an acquisition. That is, a company sells a portion of its assets, often a whole division, to another firm or individual.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, reflecting the value as perceived by the market participants.

Acquiring Firm

This is a company that purchases most or all of another company's shares to gain control over that company.

Replacement Cost

The cost to replace an asset of a company at its current price, without considering depreciation.