Your Authors Present a Table Showing Mean Returns Across Three

question 9

Multiple Choice

Your authors present a table showing mean returns across three classes of securities and across several countries. In general, the mean average annual returns for these classes of securities from highest to lowest are

• A) bonds, then equity, and finally bills.
• B) bills, then bonds, and finally equity.
• C) equity, then bonds, and finally bills.
• D) equity, then bills, and finally bonds.

Differentiate between elastic, inelastic, and unit-elastic demand.

Analyze the impact of price changes on quantity demanded and total revenue.

Recognize the significance of the availability of substitutes on the elasticity of demand.

Interpret demand curves and the elasticity at various points.