The More Time Consumers Have to Adjust to a Change

question 222

Multiple Choice

The more time consumers have to adjust to a change in price,

• A)the smaller will be the price elasticity of demand.
• B)the greater will be the price elasticity of demand.
• C)the more likely the product is a normal good.
• D)the more likely the product is an inferior good.

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Definitions:

Profit Margin

A financial ratio that measures the percentage of profit a company earns from its total revenue.

Total Asset Turnover

Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it indicates how well a company can convert its assets into revenue.

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how effectively a company uses its assets to generate profit.

Semiannual Interest Payment

A finance term referring to the practice of making interest payments twice a year on a loan or bond.