If Demand for a Good Is Price Elastic, Then the Price

question 260

Multiple Choice

If demand for a good is price elastic, then the price elasticity will be:

• A) equal to one.
• B) equal to zero.
• C) greater than one.
• D) less than one.
• E) less than zero.

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Definitions:

Controllable Revenues

Revenues earned by a profit center.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales, calculated as sales divided by the average value of investments.