A Measure of the Responsiveness of Demand for a Product

question 62

Multiple Choice

A measure of the responsiveness of demand for a product to changes in price is known as

• A)the demand to price ratio.
• B)demand and price dynamics.
• C)price-demand rigidity.
• D)demand function of pricing.
• E)price elasticity of demand.

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Definitions:

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt Ratio

The debt ratio measures a company's financial leverage, calculated by dividing total liabilities by its total assets.