If the Demand for Flashlights Is Highly Inelastic, This Indicates

question 131

Multiple Choice

If the demand for flashlights is highly inelastic, this indicates that

• A) higher flashlight prices will increase the demand for flashlights.
• B) the price elasticity of demand for flashlights is greater than 1.
• C) the price elasticity of demand for flashlights equals 1.
• D) the quantity of flashlights purchased by consumers is not very responsive to a change in the price of flashlights.

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Definitions:

LIFO Method

Last-In, First-Out Method is an inventory valuation method where the most recently produced or purchased items are recorded as sold first, while older stock remains in inventory.

FIFO Inventory

An approach to managing stock whereby the oldest inventory items are sold first, adhering to the First In, First Out principle.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within its jurisdiction.

Variable Costs

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