A Product with an Elastic Demand Means That

question 64

Multiple Choice

A product with an elastic demand means that

• A)consumers are relatively insensitive to a change in the quantity demanded.
• B)consumers are relatively insensitive to a change in the price of the product.
• C)consumers are relatively sensitive to a change in the price of the product.
• D)producers are relatively insensitive to a change in the price of the product.
• E)producers are relatively sensitive to a change in the quantity demanded.

---

Definitions:

Cash Payments Journal

An accounting journal used to record all cash payments made by a company, including expenses and debtor payments.

Control Account Balance

Refers to the total balance in a general ledger account that summarizes the balances of subsidiary ledger accounts.

Subsidiary Ledger

A ledger containing the details to support a summary line item in the General Ledger, such as accounts receivable or accounts payable.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business and is used to prepare financial statements.