The Nasdaq Composite Index

question 6

Multiple Choice

The Nasdaq Composite Index:

• A)Is a value-weighted index
• B)Is a price-weighted index
• C)Is made up of over 5000 companies traded on the NYSE
• D)Is made of mainly older firms and is heavily weighted by manufacturing

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Definitions:

Elasticity of Demand

A gauge of the responsiveness of the amount of a product consumers want to buy to shifts in its price, evidencing how changes in cost affect demand.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply, offering an average percentage change between two points to minimize bias.

Elastic

A term describing the responsiveness of the quantity demanded or supplied of a product when its price changes.

Elasticity

The degree to which the quantity demanded or supplied of a good or service changes in response to a change in price.