2008 CFA Level 1 － Sample 样题(2)－Q21 black

bingning

21、A company has determined that the quantity of that company's product demanded increases by 10% when price is reduced by 5%. That company's elasticity of demand is best described as:

A. unitary elastic.

B. perfectly elastic.

C. relatively elastic

D. perfectly inelastic.

[此贴子已经被作者于2008-11-7 13:32:27编辑过]

bingning

21、A company has determined that the quantity of that company's product demanded increases by 10% when price is reduced by 5%. That company's elasticity of demand is best described as:

A. unitary elastic.

B. perfectly elastic.

C. relatively elastic

D. perfectly inelastic.

  
Correct answer = C

"Elasticity," Michael Parkin
2008 Modular Level I, Vol. 2, pp. 10-12
Study Session 4-13-a
calculate and interpret the elasticities of demand (price elasticity, cross elasticity, income elasticity) and the elasticity of supply, and discuss the factors that influence each measure
Demand is relatively elastic, since the absolute value of the elasticity coefficient is greater than unity (10 / -5 = -2). Total revenues will expand. 

 

fatiger

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刀剑如梦

非常 感谢：）

isaisaisa

c

robinlu

C

zengchen

c

leeh

up

tannyyu

sdfafds

vivivin

re