The Demand for Bread Is Less Elastic Than the Demand

question 193

True/False

The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal.

Understand the concept and calculation of invoice price.

Recognize the implications and interpretations of bond ratings.

Understand the conversion aspects and related value calculations of convertible bonds.

Calculate the yield or rate of return on bonds over different holding periods.