The Sensitivity of Unit Sales to Changes in Price Is

question 52

True/False

The sensitivity of unit sales to changes in price is called the price elasticity of demand.

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while maintaining the same total valuation.

Contributed Capital

Funds received by a company from selling its stock to investors, representing the investors' ownership stake in the company.

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not correspond with its value on the market.

Treasury Stock

Shares of a company’s own stock that it has reacquired and holds in its treasury.