In an Extreme Hypothetical Instance in Which the Price Change

question 220

Multiple Choice

In an extreme hypothetical instance in which the price change of a good elicited no change in quantity demanded, we would say that the item is

• A) perfectly elastic.
• B) perfectly inelastic.
• C) infinitely elastic.
• D) unitary elastic.

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Definitions:

Yield

The income return on an investment, typically expressed as a percentage, indicating the interest or dividends received.

Long-Term Corporate Bonds

Bonds issued by corporations with maturities longer than ten years, offering fixed interest payments.

Eurobonds

Bonds issued in a currency other than the currency of the country or market in which it is issued, often used by companies to raise capital in foreign markets.

Yankee Bonds

Bonds issued by foreign entities in the U.S. market, denominated in U.S. dollars, to raise capital from American investors.