The Price Elasticity of Demand Is Defined as the Percentage

question 151

True/False

The price elasticity of demand is defined as the percentage change in price divided by the percentage change in quantity demanded.

---

Definitions:

Corporation

A legal entity that is separate from its owners, providing limited liability protection to its shareholders and having the ability to raise capital by selling shares.

Held

Usually refers to assets or investments retained over a period, not sold or traded.

Capital Surplus

The amount by which a company's total capital exceeds the par value of its issued share capital.

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.