The Basic Reason There Are So Many Excellent Substitutes for Water

question 26

Multiple Choice

The basic reason there are so many excellent substitutes for water in almost all Canadian cities is that:

• A)the demand for water is inelastic.
• B)the supply of water is limited.
• C)there are so many alternative drinks readily available in the marketplace.
• D)water is so inexpensive that people use it for many different purposes.

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Definitions:

Effective Annual Rate

The actual annual return on an investment or the actual annual cost of a loan, including the effect of compounding interest, as opposed to the nominal rate.

Effective Annual Rate

The actual rate of interest on an investment or loan, taking into account the effect of compounding over a given period.

Compounded

A method of calculating interest where the earned interest on an investment is added to the principal, and future interest is calculated on the total amount.

Annuity

A fiscal product designed to emit a stable series of disbursements to an individual, chiefly intended as support for retired people's income.