Table: Elasticity Characteristics The Table Lists the Characteristics of Three Goods

question 81

Multiple Choice

Table: Elasticity Characteristics $$\begin{array} { l l l } \hline \text { Good X } & \text { Good Y } & \text { Good Z } \\\hline \text { Few Substitutes } & \text { Many Substitutes } & \text { Few Substitutes } \\\text { Luxury good } & \text { Luxury good } & \text { Necessary good } \\\text { Small part of budget } & \text { Large part of budget } & \text { Small part of budget } \\\hline\end{array}$$ The table lists the characteristics of three goods. Good ________ is the most inelastic, and Good ________ is the most elastic.

• A) X; Y
• B) Z; Y
• C) X; Z
• D) Y; X

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Definitions:

Working Papers

Documents that auditors create to support an audit process, including detailed records and summaries of audit evidence.

Operating Cycle

The average period it takes for a business to convert its inventory into cash flows from sales, reflecting the time taken to sell inventory, collect receivables, and pay bills.

Income Summary

An account used in the closing process that summarizes the results of operations—revenues and expenses—over a specific period before transferring the net amount to retain earnings.

Accounting Cycle

A complete cycle that describes the steps in recording and processing financial transactions of a company from when the transaction occurs to its representation on the financial statements, and until the accounts are closed.