Other Things the Same, If a Price Change Causes Total

question 383

Multiple Choice

Other things the same, if a price change causes total revenue to change in the opposite direction, demand is

• A)perfectly inelastic.
• B)relatively elastic.
• C)relatively inelastic.
• D)of unit elasticity.

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Definitions:

Vertical Intercept

The point where a graphed line crosses the vertical axis, often used in mathematical functions to determine a starting point.

Required Rate

The minimum return an investor expects to achieve on an investment, considering the risk level associated with the investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the variability or spread of a data set.

SML

The Security Market Line (SML) is a graphical representation of the Capital Asset Pricing Model (CAPM), showing the relationship between the expected return of investments and their risk as measured by beta.