In Which Case Will the Price Change Be the Greatest

question 43

Multiple Choice

In which case will the price change be the greatest (assuming the shifts described are the same size) ?

• A) Demand is inelastic, and supply shifts to the left.
• B) Supply is perfectly elastic, and demand shifts to the left.
• C) Demand is elastic, and supply shifts to the left.
• D) Supply is elastic, and demand shifts to the left.

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Definitions:

Technology Update

The process of implementing the latest technological advancements and improvements within a company or system to increase efficiency and competitiveness.

CCA Class

Refers to a category within the Capital Cost Allowance system in Canada, grouping assets with similar depreciation rates for tax purposes.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time for an investment.

Required Rate

The minimum rate of return on an investment that a manager or investor is willing to accept before making an investment decision.