If the Price of a Good Rises by 10% and the Percentage

question 46

Multiple Choice

If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 10% then the good is

• A)elastic.
• B)inelastic.
• C)unit elastic.
• D)perfectly inelastic.

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Definitions:

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently held by investors, including the public and the company's officers and insiders.

After-Tax Cash Flow

The amount of net cash flow from operations after adjusting for taxes, providing insight into a company's financial viability after tax obligations.

Perpetual

Perpetual pertains to something that never ends or changes, often used in finance to describe a type of bond with no maturity date.

Discount Rate

The interest rate that an investment's cash flows are discounted at to calculate its present value, often reflecting the risk and opportunity cost associated with the investment.