Which of the Following Is TRUE Regarding the Concept of Elasticity

question 68

Multiple Choice

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?​

• A)​If the elasticity of demand is greater than 1.0, that demand is said to be elastic
• B)​If the elasticity of supply is greater than 1.0, that demand is said to be inelastic
• C)​If the elasticity of demand is less than 1.0, that demand is said to be elastic
• D)​If the elasticity of supply equals 1.0, that demand is said to be elastic

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Definitions:

Forward Rate

The agreed-upon price for a financial transaction, such as the exchange of currency, to take place at a future date, used to hedge against market volatility.

Eurobonds

International bonds issued in a currency not native to the country where it is issued.

Withholding Tax

Withholding tax is an income tax that an employer deducts and withholds from an employee's salary and pays directly to the government.

After-Tax Return

The profit from an investment after taxes have been deducted, often considered the most accurate measure of an investment's true return.