The Figure Given Below Shows the Demand Curves for Five

question 74

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-The value of price elasticity of demand is more likely to be above 1 if:

• A)consumers have a long time to adjust to a price change.
• B)the product is a necessity.
• C)demand is inelastic.
• D)there are few close substitutes for the product.
• E)total revenue declines in response to a price reduction.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Increased

This term denotes a situation or quantity that has become larger or greater in size, amount, number, or degree.

Direction

In finance, it refers to the trend or movement of market prices or interest rates.

Profit Margin

A financial metric that shows the percentage of revenue that exceeds the costs associated with making or buying the goods or services sold.