If a Large Percentage Increase in the Price of a Good

question 64

Multiple Choice

If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be

• A) horizontal.
• B) relatively inelastic.
• C) relatively elastic.
• D) income proof.

---

Definitions:

Risk Assessment

The process of identifying and evaluating potential risks that could negatively affect the achievement of objectives.

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and close to their maturity.