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If a 5 Percent Decrease in the Price of a Good

question 42

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If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:


Definitions:

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.

ROE

Return on Equity (ROE) is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Equity Multiplier

A measure of a company's financial leverage, calculated by dividing its total assets by total stockholders' equity.

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