A Good Is Said to Have a Relatively Elastic Demand

question 86

Multiple Choice

A good is said to have a relatively elastic demand if the value of the price elasticity of demand for the good is ________.

• A) equal to 0
• B) between 0 and 0.5
• C) between 0.5 and 1
• D) greater than 1

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Definitions:

Entry Price

Refers to the initial cost at which an asset, security, or investment is purchased, marking the basis for future financial analysis.

Equity Instrument

A financial instrument indicating ownership in an entity, such as common stock or preferred shares, that represents a claim on the entity's residual assets after liabilities have been deducted.

Risk Management Strategy

A process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Net Exposure Basis

A method of measuring risk that combines both the gross positive and negative positions to determine an entity's overall exposure.