Which of the Following Is True

question 58

Multiple Choice

Which of the following is true?
I. The demand for a good is elastic if when its price changes, the percentage change in the quantity demanded exceeds the percentage change in price.
Ii. Price elasticity of demand equals the percentage change in price divided by the percentage change in the quantity demanded.
Iii. If demand is price inelastic, a rise in price leads to a decrease in total revenue.

• A)Only i
• B)Only ii
• C)Only iii
• D)i and ii
• E)ii and iii

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Definitions:

Prior Service Cost

The cost of retroactive benefits awarded in a pension plan amendment, which is recognized over future periods.

Pension Plans

Financial programs established by employers to provide retirement income for employees.

Amend Benefits

The act of making changes to the terms or conditions of employee benefits plans.

Amortization

The method of systematically amortizing the initial value of a non-physical asset over its estimated useful lifespan.