Which of the Following Is Not a Reason for Building

question 57

Multiple Choice

Which of the following is not a reason for building financial plans?

• A) Considering options
• B) Contingency planning
• C) Choosing the optimal plan
• D) Forcing consistency

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Definitions:

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating a significant response to price changes.

Sensitivity of Quantity

The responsiveness of the quantity demanded or supplied of a product to changes in its price or other factors.

Sensitivity of Price

The degree to which the price of a product or service impacts consumer demand or the quantity supplied.

Inelastic Demand

Refers to a market situation where the demand for a product does not change significantly in response to a change in price.