Which of the Following Does Not Determine a Good's Price

question 213

Multiple Choice

Which of the following does not determine a good's price elasticity of demand?

• A)the time interval considered
• B)the number of substitutes there are for the good
• C)expenditures on the good as a percentage of the total consumer budget
• D)the slope of the demand curve
• E)the more of a luxury a particular good is

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Definitions:

Cost of Goods Sold

This refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Receivables Turnover

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times receivables are turned over during a period.

Payables Turnover

A financial ratio that measures how fast a company pays its suppliers, calculated as the cost of sales divided by average accounts payable.