If the Price Elasticity of Demand Is Found to Be

question 171

Multiple Choice

If the price elasticity of demand is found to be -6, then demand is:

• A) price inelastic.
• B) price elastic.
• C) unit price elastic.
• D) horizontal.

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Definitions:

Percentages

A mathematical means expressed as a fraction of 100 used in financial analysis to compare and quantify differences.

Common-Size Statements

Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts.

Comparative Reports

Financial reports that show side-by-side comparisons of financial data for different periods, helping to identify trends or changes over time.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base amount for comparison purposes.