Demand Is Almost Always More Price Elastic in the Long

question 130

Multiple Choice

Demand is almost always more price elastic in the long run because

• A) people's preferences change.
• B) newer versions of a good or service replace older ones.
• C) production of the good or service stops.
• D) more options become available and people can make different choices.
• E) government regulations increase.

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Definitions:

Minority Shares

Shares of stock that represent less than half of the control of a company, often held by investors who have limited influence on corporate decisions.

Business Judgment Rule

A legal principle that protects corporate directors' decision-making from judicial review as long as the decisions are made in good faith.

Shareholder's Demand

A formal request by a shareholder, typically for corporate information or to take specific actions, under legal rights.

Court Piercing

A legal action where a court disregards the corporate entity and holds its owners personally liable for corporate debts or misconduct.