There Are Very Few,if Any,good Substitutes for Motor Oil

question 175

Multiple Choice

There are very few,if any,good substitutes for motor oil.Therefore,the

• A)demand for motor oil would tend to be inelastic.
• B)demand for motor oil would tend to be elastic.
• C)demand for motor oil would tend to respond strongly to changes in prices of other goods.
• D)supply of motor oil would tend to respond strongly to changes in people's tastes for large cars relative to their tastes for small cars.

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Definitions:

Buying Inventory

The process of purchasing goods or materials that a company plans to sell to its customers, which is a critical component of managing supply and demand.

Equity Security

A financial instrument representing ownership interest in a company, such as stocks.

Preferred Stock

A type of stock that gives holders priority for dividend payments over common stockholders and may carry other privileges, but usually does not have voting rights.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, typically seen with corporate income taxed at both the corporate and shareholder levels.