The Higher the Price Elasticity the

question 25

Multiple Choice

The higher the price elasticity the

• A) the more sensitive price changes is to quantity demanded
• B) the less sensitive price changes is to quantity demanded
• C) the more sensitive quantity demanded to price changes
• D) the less sensitive quantity demanded to price changes

---

Definitions:

AASB 141

Refers to the Australian Accounting Standards Board's standard on Agriculture, which guides how agricultural activities and products should be accounted for and reported in financial statements.

IAS 41

An International Accounting Standard that requires agricultural activity's biological assets and agricultural produce to be measured at fair value less costs to sell.

Fair Value Changes

Fair value changes refer to adjustments made to the recorded value of an asset or liability to reflect its current market value, impacting the financial statements accordingly.

Impairment

A reduction in the recoverable amount of a fixed asset or goodwill below its book value, often reflecting decreased future earning potential.