The Greater the Elasticity of Demand for a Final Product

question 341

Multiple Choice

The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs.

• A) the greater will be
• B) the lower will be
• C) that it will not impact
• D) The answer cannot be determined.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, representing a share of the corporate profits.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not accumulated. Investors are not entitled to claim missed dividends in the future.

Par Common Stock

The face value of common stock as stated in the corporate charter; often a nominal amount that has no relation to its market price.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.