A Product Would Be More Demand Price Elastic

question 253

Multiple Choice

A product would be more demand price elastic:

• A) the shorter the time the consumer has to adjust to price changes.
• B) the lower the price of the good.
• C) the fewer the number of good substitutes.
• D) the less the essential nature of the good.
• E) if the supply is more price elastic.

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Definitions:

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.

Purchase Discounts

Reductions in the price of goods purchased, usually as a reward for early payment to the supplier.

Freight-In

The cost associated with getting inventory to a business, usually included in the cost of goods sold.