Answer the Question on the Basis of the Following Demand

question 45

Multiple Choice

Answer the question on the basis of the following demand schedule: $\begin{array}{l}\begin{array}{ccc}&\text { Quantity }\\\underline{\text { Price} } & \underline{\text { Demanded}} \\ \$6 & 1 \\5 & 2 \\4 & 3 \\3 & 4 \\2 & 5 \\1 & 6\end{array}\end{array}$ Refer to the data.The price elasticity of demand is relatively inelastic:

• A) in the $6-$4 price range.
• B) over the entire $6-$1 price range.
• C) in the $3-$1 price range.
• D) in the $6-$5 price range only.

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Weights

In finance, it often refers to the ratios or percentages assigned to different components of a portfolio or an index, indicating their relative importance.

Expected Return

The anticipated profit or loss of an investment, calculated by taking the average of possible returns weighted by their probabilities.