If a 10 Percent Rise in Price Leads to a Reduction

question 136

Multiple Choice

If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,

• A) demand is elastic.
• B) demand is inelastic.
• C) elasticity of demand is unitary.
• D) None of the above is correct.

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Definitions:

Congestion Area

A term used in technical analysis to describe a range-bound price movement in a security or market, characterized by repeated support and resistance levels.

Figure Chart

Figure chart, often referred to as a point and figure chart, is a charting tool used in technical analysis that plots price movements without regard to time, focusing solely on price actions.

Put/call Ratio

This is a technical indicator that measures the relative trading volume of put options to call options, often used to gauge market sentiment and potential market direction.

Market Contrarians

Market Contrarians are investors who deliberately adopt investment strategies that are opposite to the prevailing wisdom or market trends.