The Price Elasticity of Demand Refers To

question 1

Multiple Choice

The price elasticity of demand refers to:

• A) a measure of the demand for the industry in which a firm competes
• B) how much the demand for a good or service changes when there is an increase in incomes
• C) the economic principle that as price increases the quantity demanded decreases
• D) the fact that the demand for some goods and services may be countercyclical
• E) how much quantity demanded changes when there is a change in the price of a good or service

---

Definitions:

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual transactions affecting a specific general ledger account, facilitating in-depth analysis and reconciliation.

General Ledger

A comprehensive record of all financial transactions over the life of a company.

Individual Balances

The amounts recorded in separate accounts representing various assets, liabilities, or equity of an individual or entity.

Special Journal

A specialized accounting journal designed to record a particular type of transaction consistently, such as sales or cash disbursements.