The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 102

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-Which of the following indexes includes the stocks of 500 companies that are widely owned and that represent all sectors of the U.S. economy?

• A)Standard & Poor's 500
• B)Dow Jones Industrial Average
• C)BSE Sensex
• D)Mid-Cap-50
• E)NSE 20 Share Index

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Definitions:

Price Elasticity

A measure of how the quantity demanded of a good is affected by a change in its price.

Inelastic

A characteristic of demand when consumers' purchase quantities are not significantly affected by changes in the price of a good or service.

Good Substitutes

Products or services that can be used in place of one another, satisfying the same needs or wants of the consumer.

Elastic

Describes demand or supply that is highly sensitive to changes in price; a small change in price leads to a large change in the quantity demanded or supplied.