Demand Is Inelastic If

question 139

Multiple Choice

Demand is inelastic if

• A)a small change in price results in a large change in quantity demanded.
• B)the quantity demanded is very responsive to a change in price.
• C)the price elasticity of demand is 0.2.
• D)the price does not change when supply increases.
• E)a 10 percent change in price results in a 1 percent change in the quantity supplied.

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Definitions:

Market Value

The ongoing value for buying or selling an asset or service in a market setting.

Par Stock

The ideal quantity of specific inventory items that a business should hold to meet demand without overstocking.

Stockholders' Equity

Stockholders' Equity represents the ownership interest of shareholders in a corporation, calculated as the company's total assets minus its total liabilities.

Liability

A financial obligation or debt owed by a company to third parties, such as loans, accounts payable, or mortgages.