If the Quantity of Carrots Demanded Increases by a Large

question 133

Multiple Choice

If the quantity of carrots demanded increases by a large percentage when income increases by a small amount, we know that the demand for carrots is

• A)price elastic.
• B)price inelastic.
• C)income inferior.
• D)income inelastic.
• E)income elastic.

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Definitions:

Operating Expenses

The costs associated with a company's main operational activities, excluding the cost of goods sold, interest, and taxes.

Income from Operations

The earnings generated from a company's core business operations, excluding any income from investments or other non-operational sources.

Net Sales

Revenue from sales after deducting returns, allowances for damaged goods, and discounts.

Income Before Taxes

Earnings of a company before income tax expense is deducted, indicating its profitability from operations.