The Following Graph Depicts Demand

question 80

Multiple Choice

The following graph depicts demand.
Refer to the figure above.The price elasticity of demand at point A is:

• A) 5/2.
• B) 5/8.
• C) 2/5.
• D) 8/5.

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Definitions:

Acid-test Ratio

A financial ratio indicating a firm's capacity to settle its short-term obligations without selling its stock.

Current Ratio

A financial metric assessing a firm's capability to cover its short-term debts using its short-term assets, determined by dividing current assets by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Acid-test Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets.