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Fynjy0 [20]
3 years ago
14

If the absolute value of the price elasticity of demand is greater than 1:

Business
1 answer:
FrozenT [24]3 years ago
7 0

Answer:

b. small percentage changes in the price will lead to much larger percentage changes in the quantity demanded.

Explanation:

Price elasticity of demand is a measure of how responsive is quantity demanded to change in price. Its formula is given by:

E_{D} = \frac{dQ}{Q}{\frac{P}{dP} =

= % Change in Quantity Demanded / % Change in Price

So when absolute value E_{D}  is greater than 1, a x percentage change in price will lead to larger than x percentage change in quantity demanded.

<u>Note</u>: Whether the percentage change in quantity demanded will be just a little or very much larger than percentage change in price will depend on how much E_{D} is larger than 1. But b is the still the best answer among the options.

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Bond market values are expressed as a percentage of their par (face) value. For example, a company's bonds might be trading at 1
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In the same vein, 103 price means the quoted price of the bond is 103% of the par value of the bond/

Find a futher guide on bond pricing below:

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kkurt [141]

Answer:

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A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100

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4 years ago
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