What Could a Firm Do If It Wanted to Know

question 68

Multiple Choice

What could a firm do if it wanted to know whether the demand for its product was elastic, unit-elastic, or inelastic?

• A)Survey competitors and ask them what they think demand elasticity is for the product.
• B)Talk to its customers.
• C)Change price a little bit and observe what happens to total revenue.
• D)Not do anything as there is no way to find an elasticity value.

Know the functionalities and advantages of using a Content Management System (CMS) and Integrated Development Environments (IDEs).

Understand how to record transactions involving forward contracts under fair-value and cash-flow hedge accounting.

Identify and classify different types of hedges (fair-value, cash-flow, natural hedge).

Determine the cost and effectiveness of hedge accounting.

---

Definitions:

Good Continuation

A factor in visual grouping; we tend to perceive contours in a way that alters their direction as little as possible.

Figure-Ground Separation

The visual ability to distinguish an object (the figure) from its surrounding background (the ground).

Feature Detectors

Neurons in the retina or brain that respond to specific attributes of the stimulus, such as movement, orientation, and so on.

Line Orientation

The direction in which a line or linear object points or aligns within a visual field or specified space.