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If the Market for a Product Is Narrowly Defined, Then

question 172

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If the market for a product is narrowly defined, then there are likely to be many substitutes for the product and the demand for the product is relatively elastic.


Definitions:

Economic Outlook

An analysis or forecast of the future economic condition, including expectations for growth, inflation, and employment.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, used to assess the relative risk of an investment.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Characteristic Line

A line generated in a graphical representation of the returns on a security versus the returns on the market, used to assess risk.

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