The More Time People Have to Adjust to a Price

question 100

Multiple Choice

The more time people have to adjust to a price change:

• A) the less elastic their demand will be.
• B) will not affect the elasticity of their response unless it is a luxury good.
• C) the more elastic their demand will be.
• D) will not affect the elasticity of their response unless the good is a necessity.

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its goals.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred in operating a business.

Return on Assets Ratio

A financial metric that measures how profitable a company is in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

Total Assets

The summation of all the company's assets, including those that are tangible and intangible, which are owned and can provide economic value.