If a Good Is Inferior,its

question 126

Multiple Choice

If a good is inferior,its

• A)Cross-price elasticity is negative.
• B)Price elasticity of demand is negative.
• C)Income elasticity of demand is positive.
• D)Income elasticity of demand is negative.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Write-off

The process of recognizing that a portion of a company's inventory or accounts receivable is no longer valuable and removing it from the financial statements.

Service Charge

A fee collected for services provided, often added to the base cost of services in industries such as hospitality, banking, and utilities.

Credit Card

A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.