Price Elasticity Is Calculated By

question 1

Multiple Choice

Price elasticity is calculated by:

• A)multiplying the change in quantity demanded times the percentage change in price.
• B)dividing the change in quantity demanded by the percentage change in price.
• C)adding the percentage change in price plus the change in quantity demanded.
• D)dividing the percentage change in price by the change in quantity demanded.
• E)multiplying the percentage change in price times the change in quantity demanded.

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Definitions:

Arithmetic Return

The simple average of periodic returns of an investment over a specified time frame.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and magnitude of cash flows into and out of the investment.

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.