If Demand for a Given Good Is Elastic, Then a Given

question 50

Multiple Choice

If demand for a given good is elastic, then a given percentage change in price will bring about a(n) __________ percentage change in quantity __________.

• A)larger; demanded
• B)smaller; demanded
• C)equal; supplied
• D)smaller; supplied
• E)equal; demanded

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Definitions:

Acid-test Ratio

A stringent indicator of a company's liquidity, calculating its ability to cover short-term obligations with its most liquid assets, excluding inventory.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period of time, indicating efficiency in inventory management.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Generate Sales

The process of creating revenue through the marketing and selling of goods or services.