Demand Is Elastic,which Means That the Percentage Change in __________

question 12

Multiple Choice

Demand is elastic,which means that the percentage change in __________ is greater than the percentage change in __________.

• A) quantity demanded; income
• B) quantity demanded; price
• C) price; quantity demanded
• D) income; price
• E) none of the above

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Definitions:

Accounts Payable Turnover Ratio

A liquidity ratio that measures how many times a company pays off its suppliers over a period.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods or services received.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Interest-Bearing Note

A debt instrument that pays interest to the holder until the maturity date, at which point the principal is repaid.