If the Cross Elasticity of Demand Is +2

question 44

Multiple Choice

If the cross elasticity of demand is +2.0, this means that

• A)the percentage change in quantity demanded of a product is 2 times the percentage change in price of some other product.
• B)if quantity demanded of a product fell by 1 percent, price of another product would fall by 2 percent.
• C)if price of one product was raised by 2 percent, quantity demanded of another product would fall by 2 percent.
• D)if price of one product was raised 2 percent, quantity demanded of another product would rise 2 percent.
• E)the percentage change in quantity demanded of a product is 2 times the percentage change in the price of that product.

Analyze the financial impact of currency exchange rate fluctuations on the financial statements of foreign subsidiaries.

Apply the principle of foreign currency translation to prepare a balance sheet and statement of cash flows.

Identify and understand the justification and circumstances requiring the remeasurement of foreign currency transactions.

Distinguish between the functional currency and reporting currency in the context of foreign operations.

---

Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; relating to right and wrong in conduct.

Employers

Individuals or organizations that hire and pay employees for their work or services.

Assessment Centers

A method used by organizations to evaluate candidates' abilities by subjecting them to a variety of exercises, simulations, and activities designed to simulate real-life job scenarios.

Ability Tests

Assessments designed to evaluate a person's competence in specific skills or areas of knowledge, often used in academic evaluations or employment selection processes.