Which of the Following Is False

question 124

Multiple Choice

Which of the following is false?

• A)​When demand is elastic, quantity and total revenue change in the same direction along it.
• B)​When demand is inelastic, quantity and total revenue change in the opposite direction along it.
• C)​When supply is elastic, quantity and total revenue change in the same direction along it.
• D)​When supply is inelastic, quantity and total revenue change in the opposite direction along it.

---

Definitions:

Option Price

Option price refers to the premium that must be paid to buy an option, which grants the holder the right, but not the obligation, to buy or sell an underlying asset at a set price.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss.

Call Option

A contractual arrangement in the realm of finance offering the buyer the privilege, though not the compulsion, to procure a share, bond, commodity, or alternate asset at a fixed price throughout a specified duration.

Pure Discount Debt

is a form of debt financing where the borrower issues securities at a discount from their face value, which will be repaid at maturity for the full face value.