If a Consumer Is Relatively Insensitive to Changes in the Price

question 282

Multiple Choice

If a consumer is relatively insensitive to changes in the price of a good, then the consumer's demand for the good is

• A) elastic.
• B) unit elastic.
• C) inelastic.
• D) perfectly elastic.

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Definitions:

Beginning Inventory

The value of inventory held by a business at the start of an accounting period.

Inventory Costing Method

Techniques used to assign costs to inventory and cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from net sales, representing the profit from selling goods before deducting operating expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using a specific inventory valuation method.