In the Real World, Demand Is Not Likely to Be

question 154

Multiple Choice

In the real world, demand is not likely to be perfectly inelastic at every price because

• A)no substitutes exist for some goods
• B)some consumers will be unable to afford very high prices with given incomes
• C)at low prices, consumers always want a lot
• D)consumers are willing to pay any price for certain goods
• E)the prices of certain goods don't change

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Definitions:

Net Income

The net income of a company following the subtraction of all costs and taxes from the gross revenue.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash.

Annual Financial Statements

Reports that give an overview of a company's financial condition for a specific fiscal year, including income statements, balance sheets, and cash flow statements.

December 31

The last day of the year in the Gregorian calendar, often used as the end date for annual financial statements.