The Midpoint Method Is Used to Compute Elasticity Because It

question 80

Multiple Choice

The midpoint method is used to compute elasticity because it

• A)automatically computes a positive number instead of a negative number.
• B)results in an elasticity that is the same as the slope of the demand curve.
• C)gives the same answer regardless of the direction of change.
• D)automatically rounds quantities to the nearest whole unit.

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Definitions:

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin.

Purchase GM Stock

The action of buying shares in General Motors Company, an American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to avoid a margin call.