The Price Elasticity of Demand Is

question 91

Multiple Choice

The price elasticity of demand is

• A) always positive, so there is no reason to consider the absolute value of the price elasticity of demand.
• B) always negative, but by convention, economists typically express the price elasticity of demand as an absolute value.
• C) always equal to -1, which by convention economists typically express as an absolute value, or 1.
• D) always equal to zero, so there is no reason to consider the absolute value of the price elasticity of demand.

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Definitions:

Bonds Payable

Long-term liabilities representing money owed by a corporation or government to bondholders, to be repaid at a specific future date.

Straight Line Amortization

A method of amortizing an intangible asset evenly over its useful life.

Voting Shares

Equity that grants the investor voting privileges on matters like board of directors' elections.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without recognizing any changes in market value until they are sold.