Andy and Annie Are in a Happy Relationship

question 156

Multiple Choice

Andy and Annie are in a happy relationship. Annie has many substitutes for Andy, but Andy has few substitutes for Annie. Suppose that one of them has to move two hours away for work. Which one of them will do the majority of the driving if they decide to continue their relationship on a long-distance basis?

• A) Andy, because he is the more elastic factor
• B) Annie, because she is the more elastic factor
• C) Annie, because she is the less elastic factor
• D) Andy, because he is the less elastic factor

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Definitions:

Market Efficiency

a condition in which asset prices fully reflect all available information.

Well-Organized Markets

Refers to financial markets that are structured efficiently, facilitating the seamless exchange of securities.

Dollar Return

The total gain or loss on an investment expressed in monetary terms, considering both capital gains and dividends or interest.

Shares

Portions of ownership in a corporation or financial entity, shares guarantee an equal share in dividend payouts, contingent on profit declarations.