In Business Markets with Inelastic Demand ________

question 56

Multiple Choice

In business markets with inelastic demand ________.

• A) the total demand for products is not much affected by short-term price changes
• B) buyers are highly sensitive to price changes
• C) derived demand is absent
• D) a business purchase usually involves less decision participants
• E) a business purchase usually does not involve a professional purchasing effort

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Definitions:

Physical Inventory

The manual count of all merchandise or stock in a store or warehouse at a particular time.

Estimated Returns Inventory

A reserve of products anticipated to be returned by customers, accounting for potential future merchandise returns.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company’s books for the next period.

Perpetual Inventory System

An approach to inventory management where updates to inventory records are made in real-time after each purchase, sale, or return transaction.