When Nesco Brand Food Hydrators Sold for $59

question 31

Multiple Choice

When Nesco brand food hydrators sold for $59.99,Nesco sold 90 dehydrators.When the company dropped the price of its dehydrators to $44.95,it sold 145 dehydrators.Demand for the food dehydrators appears to be:

• A) elastic
• B) inelastic
• C) unitary
• D) symmetrical
• E) asymmetrical

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Definitions:

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.

Reward

Typically refers to the potential gains or returns derived from an investment or action, balanced against the risk involved.

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.