Demand for a Good Will Tend to Be More Price

question 22

Multiple Choice

Demand for a good will tend to be more price elastic if it exhibits which of the following characteristics?

• A)It accounts for a small part of the consumer's total income.
• B)The good has many available substitutes.
• C)It is a non-durable (as opposed to a durable good).
• D)There is little time for the consumer to adjust to the price change.

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Definitions:

Subsidiary Ledger

A ledger containing the details of accounts summarized in a controlling account in the general ledger.

Accounts Payable

Liabilities representing money owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Accounting Information System

An Accounting Information System is a structured framework used to collect, store, manage, process, retrieve, and report financial data.

Cost Effective

This term refers to an approach or solution that provides the best possible outcome or value for the money spent, often used in evaluating projects or investments.