The Sensitivity of Customers to Changes in Price Is Called

question 10

Multiple Choice

The sensitivity of customers to changes in price is called:

• A) Demand elasticity
• B) Inelasticity
• C) Fully landed cost
• D) Marginal cost

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Definitions:

Stated

Pertains to information, policies, or conditions that are formally expressed or declared by an authoritative source or document.

Long Hedger

An investor or trader who enters into contracts to purchase a commodity or asset at a future date to protect against price increases.

Short Hedger

An investor who hedges against potential price declines by selling futures contracts or entering into similar derivatives positions.

Increase

A rise in the quantity, level, or number of something.