If the Absolute Price Elasticity of Demand for Automobiles Is

question 152

Multiple Choice

If the absolute price elasticity of demand for automobiles is equal to 0.75, we say

• A) that demand is inelastic.
• B) that demand is elastic.
• C) that there is a strong responsiveness of quantity demanded to automobiles price cuts.
• D) none of the above is correct.

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Definitions:

Deposits

Funds placed into an account at a financial institution for safekeeping or as a pledge for future repayment.

Compounded Semiannually

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a semiannual basis.

Single Investment

Single investment refers to an investment in only one asset or security, rather than diversifying across multiple investments.

Annual Interest Rate

The Annual Interest Rate is the percentage of interest that is charged or earned on an investment, loan, or savings account over the span of a year.