Which of the Following Would Tend to INCREASE the Elasticity

question 12

Multiple Choice

Which of the following would tend to INCREASE the elasticity of demand for good X?

• A)a new discovery allows firms to produce X at a much lower cost.
• B)the percent of a consumer's income spent on good X declines.
• C)a new product,Y,which can be used in place of X,is introduced.
• D)both b and c
• E)all of the above

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Definitions:

Note

A financial instrument acknowledging debt, with terms including interest rate and repayment schedule.

Short-Term Notes Receivable

Current assets representing written promises for amounts to be received within a short period, typically within a year.

Cash (Net) Realizable Value

Cash (net) realizable value is the estimated amount of cash that a company expects to collect from its receivables, net of any allowances for doubtful accounts.

Interest Receivable

The amount of interest that has been earned but not yet received in cash by the company, representing an asset on the balance sheet.