The Certainty of a Lengthy Stream of Revenues for a Firm

question 113

True/False

The certainty of a lengthy stream of revenues for a firm is much greater for a customer acting only on inertia.

---

Definitions:

Very Elastic

A description of a demand or supply curve which shows that the quantity demanded or supplied changes significantly as price changes.

Unit Elastic

A situation in which a one percent change in price causes an equal percentage change in quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a product is barely affected by changes in the price.

Calculate Elasticity

entails determining the degree to which the quantity demanded or supplied of a good changes in response to a change in its price.