When the Percentage Change in Quantity Demanded Is Greater Than

question 2

Multiple Choice

When the percentage change in quantity demanded is greater than the percentage change in price that brought it about, demand is said to be

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) unelastic.
• E) zero elastic.

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Definitions:

Purchase Price

The total cost incurred to acquire an asset, including the price of the asset itself along with any additional costs necessary to bring the asset to a usable state.

Treasury Stock

Stock that has been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Sold for Less

A situation where the selling price of goods or services is less than their cost or original value.

Cost

The amount of money required to purchase or produce something, including materials, labor, and overhead expenses.