A 15% Decrease in the Price of Sugar Causes the Quantity

question 81

Multiple Choice

A 15% decrease in the price of sugar causes the quantity demanded to rise by 5%.The demand for sugar is

• A)perfectly elastic.
• B)relatively elastic.
• C)unit elastic.
• D)relatively inelastic.
• E)perfectly inelastic.

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Definitions:

Risky Investment

An investment that carries a higher probability of losing money, alongside the possibility of yielding high returns.

Risk-free Investment

An investment that is considered to have no risk of financial loss, often represented by government bonds in stable countries.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests it is less volatile.