A price elasticity of demand of 5 means that for every 1 percent change in price, the quantity demanded will change in the opposite direction by 5 percent
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Underwriting spreads on equity issues are much __________ than on debt issues because stock prices are so __________ relative to bond prices
A) smaller; steady B) smaller; volatile C) larger; steady D) larger; volatile
You should specialize in the production of a good if you have
A) an absolute advantage. B) more capital resources than your trading partner. C) more human resources than your trading partner. D) a comparative advantage.
Because local banks earn fees for each loan, their role to:
A. properly assess the risk of each borrower is misaligned with their incentive. B. create not many mortgages perfectly aligns with their incentives. C. provide mortgage loans only to those with low credit scores is misaligned with their incentive. D. properly assess the risk of each borrower is perfectly aligned with their incentive.
A company with a strong performance level that needs to raise a large amount of financial capital to expand across the nation is best organized as a
a. sole proprietorship b. partnership c. multinational d. union e. corporation