If for a Particular Market a Drop in Price from $100

question 9

Multiple Choice

If for a particular market a drop in price from $100 to $50 causes quantity supplied to decrease from 3 million to 2 million units we can say that supply:

• A)is elastic
• B)is inelastic
• C)is perfectly inelastic
• D)is perfectly elastic
• E)has a price elasticity whose numerical value is exactly equal to one

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Definitions:

Earnings Expected

The projected income a company anticipates generating over a specific period, often used by investors to gauge future profitability.

Uneven Cash Flows

Refers to cash inflows or outflows that vary in amount over different periods, not following a uniform pattern.

Nominal Rate

The stated interest rate of a bond or loan, which does not account for inflation or compounding effects.

Fifth Payment

Typically refers to the fifth installment of a scheduled series of payments.