When the Absolute Percentage Change in Quantity Demanded Is Just

question 139

Multiple Choice

When the absolute percentage change in quantity demanded is just equal to the percentage change in price, demand is

• A) elastic.
• B) perfectly inelastic.
• C) unit-elastic.
• D) relatively inelastic.

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Definitions:

Retiring Treasury Stock

The act of permanently removing previously bought-back shares (treasury stocks) from the market, reducing the company's available shares and total equity.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends or significant changes in value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares.