The Fundamental Determinant of the Elasticity of Demand for a Good

question 259

Multiple Choice

The fundamental determinant of the elasticity of demand for a good is:

• A) the opportunity cost of producing the good.
• B) the value that consumers place on one more unit of the good.
• C) how easy it is to substitute the good for another.
• D) the number of consumers in the market.

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Definitions:

Inventory Turnover

A metric that indicates how many times a company’s inventory is sold and replaced over a specific period.

Retail Method

An accounting technique used to estimate inventory value by calculating a cost to retail price ratio and applying it to the ending inventory at retail prices.

Merchandise Inventory

The total value of a retailer's goods that are available for sale to customers.