We Calculate the Price Elasticity of Demand as the

question 159

Multiple Choice

We calculate the price elasticity of demand as the

• A) ratio of the percentage change in the quantity demanded to the percentage change in price.
• B) change in quantity divided by the change in price.
• C) ratio of the percentage change in the price to the percentage change in quantity.
• D) percentage change in the quantity demanded divided by the percentage change in income.
• E) equilibrium quantity divided by the equilibrium price.

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Definitions:

Broker Fee

A flat fee or commission that a stockbroker charges for trade stocks.

Fractional Share

A portion of a single share of a company, allowing investment in smaller amounts than the full share price.

Capital Gain

The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the purchase price.

Annual Dividend

The total dividend payment a shareholder receives from a company in one fiscal year, based on the number of shares owned.