The Fact That Landlords Are Able to Pass the Majority,but

question 107

Multiple Choice

The fact that landlords are able to pass the majority,but not all,of the burden of property taxes on to renters suggests that the price elasticity of demand for apartments is

• A)Elastic.
• B)Inelastic.
• C)Perfectly elastic.
• D)Perfectly inelastic.

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Definitions:

Variable Costs

Variable Costs are expenses that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, or insurance.

Competition-oriented

Focused on outperforming rivals in a market by differentiating products, services, or business practices.

Customary Pricing

Setting prices based on what is traditionally expected or accepted within a market or by customers.