When the Absolute Value of the Percentage Change in Quantity

question 106

Multiple Choice

When the absolute value of the percentage change in quantity demanded is less than the absolute value of the percentage change in price, demand is:

• A) inelastic.
• B) elastic.
• C) unit-elastic.
• D) unknown.

---

Definitions:

Time-Weighted

A method for calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing on the manager's ability to select securities.

Pension Fund

A pool of assets forming an investment plan that provides retirement income to employees.

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a measure of time for calendars, age, and time intervals.

Sponsor

An entity or individual that supports an event, activity, person, or organization financially or through the provision of products or services.