Which of the Following Is NOT a Factor That Determines

question 383

Multiple Choice

Which of the following is NOT a factor that determines the price elasticity of demand?

• A) the amount that suppliers have made available
• B) the percentage of a consumer's total budget spent on the good
• C) the existence of substitutes
• D) the length of time allowed for adjustments to change in the price of the commodities

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Definitions:

Call Option

A financial contract granting the buyer the right to buy an asset at a specified price before a set date.

Exercise Price

The cost at which the person holding the option has the right to purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Underlying Stock

This refers to the stock on which derivative contracts, such as options and futures, are based.

American Call

A type of call option that can be exercised at any time before its expiration date.