Which of the Following Is True

question 113

Multiple Choice

Which of the following is true?

• A)on a linear demand curve, the higher the price the less elastic is demand
• B)on a linear demand curve, elasticity is not constant
• C)at the same price demand is more elastic on the steeper demand curve
• D)none are true

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Definitions:

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Convertible Note

A financial instrument that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the holder.

Derivative Instruments

Financial contracts whose value is derived from the value of an underlying asset, index, or interest rate.

Primary Instruments

The basic securities in the financial market, such as stocks and bonds, that are traded directly between entities.