If the Price of Business Broadband Is Greater Than That

question 42

Multiple Choice

If the price of business broadband is greater than that of residential broadband, all else equal

• A)business has greater price elasticity than residential.
• B)residential has greater price elasticity than business.
• C)both have inelastic demand curves.
• D)generally speaking, broadband is equally priced.

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Definitions:

Pure Play Method

A valuation method focusing on companies specializing in a single line of business to estimate investment risks and returns.

Scenario Analysis

A method used in finance to analyze the different possible outcomes of a decision given varying sets of assumptions.

Sensitivity Analysis

A financial modeling tool used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Decision Tree Analysis

A graphical technique used for decision-making and risk management, representing different courses of action and their possible outcomes.