Which of the Following Is True Regarding the Resistance Level

question 4

Multiple Choice

Which of the following is true regarding the resistance level?

• A) Resistance levels tend to develop due to profit taking.
• B) It is the level at which a significant decrease in demand is expected.
• C) It is the level at which a significant increase in supply is expected.
• D) Resistance levels usually develop after a stock reaches a new low.

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Definitions:

Cross Elasticity Coefficient

A measure of how the quantity demanded of one good changes in response to a price change in another good.

Substitutability

The degree to which a product or service can be replaced with another as viewed by the consumer, affecting competition and market dynamics.

Minimum Wage

The lowest legal hourly rate that employers can pay workers, established to protect workers from unduly low compensation.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price changes.