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on Dec 19, 2024
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The price of gold is often volatile because
A) demand is relatively inelastic, so changes in supply have a large effect on price.
B) supply is relatively elastic, so changes in demand have a large effect on price.
C) demand is relatively elastic, so changes in supply have a large effect on price.
D) supply is relatively inelastic, so changes in demand have a large effect on price.
Price Volatile
Price volatility refers to the rate at which the price of a security or commodity moves up or down.
Supply
The total amount of a product or service that is available to consumers.
Demand
The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.
- Ascertain the factors determining the suppleness of supply and demand.
- Evaluate the role of elasticity in market adjustments and price volatility.
Verified Answer
CM
Learning Objectives
- Ascertain the factors determining the suppleness of supply and demand.
- Evaluate the role of elasticity in market adjustments and price volatility.