Which of the Following Statements Is True

question 67

Multiple Choice

Which of the following statements is true?

• A) When conducting sensitivity analysis all variables except one are held constant.
• B) When conducting sensitivity analysis a 'base-case' set of assumptions must be established.
• C) Scenario analysis is a more complex form of sensitivity analysis.
• D) both (a)and (b)are true
• E) all of the above are true

---

Definitions:

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied.

Demand Curves

Demand curves graphically represent the relationship between the price of a good and the quantity demanded by consumers.

Minimum Wage

is the lowest legal salary that employers can pay workers, set by government law to protect workers from unduly low pay.

Price Support

Government intervention in a market to maintain the price at a certain level, usually done through the purchase of surplus stock or direct subsidies to producers.