Other Things Being Equal, the Longer a Price Change Persists

question 90

Multiple Choice

Other things being equal, the longer a price change persists

• A) the less is the elasticity of demand.
• B) the less chance a consumer will be able to adjust.
• C) the more the consumer will be willing to pay.
• D) the greater is the elasticity of demand.

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Definitions:

Present Value

The present-day financial assessment of a sum of money to be received later or a series of cash flows, based on a specific rate of return.

Discount Rate

In discounted cash flow analysis, the Discount Rate refers to the interest rate employed to ascertain the present value of future cash flows.

Future Cash Flows

Future cash flows refer to the estimated amounts of money to be received or paid by a business in the future, often used in investment analysis and valuation.

Present Value

The immediate monetary value of a future sum of money or cash flow sequences, utilizing a known rate of return for calculation.