The Price Elasticity of Demand Measures the Responsiveness of the Change

question 143

Multiple Choice

The price elasticity of demand measures the responsiveness of the change in the:

• A)quantity demanded to a change in the price.
• B)price to a change in the quantity demanded.
• C)slope of the demand curve to a change in the price.
• D)slope of the demand curve to a change in the quantity demanded.

---

Definitions:

Deferred Tax Liability

Future tax obligations due to temporary differences between the accounting and tax treatment of transactions.

Tax Basis

The value of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on a sale or transfer.

Tax Rate

The proportion of income or corporate profits charged by the government as tax.

Consolidated Balance Sheet

An aggregated financial statement that shows all assets, liabilities, and equity of a parent company and its subsidiaries.