There Are Very Few,if Any,good Substitutes for Automotive Tires

question 269

Multiple Choice

There are very few,if any,good substitutes for automotive tires.Therefore,the demand for automotive tires would tend to be

• A)elastic.
• B)unit elastic.
• C)inelastic.
• D)highly responsive to changes in income as well as changes in prices.

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Definitions:

Fair Value

The estimated price at which an asset would change hands between a willing buyer and seller, not under compulsion and with reasonable knowledge of the relevant facts.

Mortgage

A loan secured by real property, typically used to purchase that property.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus accumulated depreciation.

Fair Value

The estimated price at which an asset or liability could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.