The magnitude of price elasticity depends upon three factors: a) The closeness of substitute goods b) The proportion of the buyer’s income spent of the product c) the time elapsed since a price change d) all the above Answer in 90sec…please
D. all.
not sure with C but will pick D
yes!!!
D! Map is on fire tonight!!! 
<> this is huge. part of the Porter paradigm – more sub goods out there = less pricing power. Think of commoditized industries.
strangedays Wrote: ------------------------------------------------------- > D! Map is on fire tonight!!! I actually remember this being on the mid-towords down on the left side page in the CFAI text:)
daj224 Wrote: ------------------------------------------------------- > <> > > this is huge. part of the Porter paradigm – more > sub goods out there = less pricing power. Think of > commoditized industries. LOL…you sound like and MBA guy!
strangedays Wrote: ------------------------------------------------------- > daj224 Wrote: > -------------------------------------------------- > ----- > > <> > > > > this is huge. part of the Porter paradigm – > more > > sub goods out there = less pricing power. Think > of > > commoditized industries. > > > LOL…you sound like and MBA guy! no comment
How could there be three factors if you don’t choose D?? Check again.
Dreary Wrote: ------------------------------------------------------- > How could there be three factors if you don’t > choose D?? Check again. YEAH, HE SHOULD HAVE ASKED IT: WHICH OF THE FOLLOWING FACTORS?
I know… Sorry guys
D. All
Just let you know, in real exam there are no questions like all of the above and none of the above. You see only at Scheweser.
Did you post that question to tease us? or was it a real question??