Which of the Following Would Be Most Inelastic with Regard

question 263

Multiple Choice

Which of the following would be most inelastic with regard to price?

• A)​a Samsung LCD television
• B)​a Sony LCD television
• C)​all LCD televisions
• D)​Demand for all of the above would be equally elastic because none are necessities.

---

Definitions:

Return On Capital Employed (ROCE)

A financial ratio that measures a company's profitability and efficiency in using its capital; calculated as EBIT (Earnings Before Interest and Taxes) divided by capital employed.

Capital Structure

The composition of a company's liabilities and shareholders' equity including debt, equity, and any other types of financing.

Tax Bracket

A range of income over which the tax rate is constant.

Modigliani-Miller Model

A theory on capital structure that suggests that under certain market conditions (no taxes, no transaction costs), the value of a firm is unaffected by how it is financed.