Which of the Following Is Not Characteristic of the Demand

question 71

Multiple Choice

Which of the following is not characteristic of the demand for a commodity that is elastic?

• A) The relative change in quantity demanded is greater than the relative change in price.
• B) Buyers are relatively sensitive to price changes.
• C) Total revenue declines if price is increased.
• D) The elasticity coefficient is less than one.

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Definitions:

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.

Capital Balance

The amount of money in a company's equity account, not including profits or losses.

Interest

The fee paid for borrowing money, typically expressed as an annual percentage of the principal.