If the Percentage Change in Quantity Demanded of a Good

question 186

Multiple Choice

If the percentage change in quantity demanded of a good is less than the percentage change in buyer's income, then the good is said to be

• A)income elastic.
• B)income inelastic.
• C)income unit elastic.
• D)price elastic.
• E)price inelastic.

---

Definitions:

Periodic Depreciation

The allocation of an asset's cost over its useful life, recognized as an expense on the income statement at regular intervals, typically annually.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, departments, or projects.

Units-Of-Output Method

A depreciation method where the expense amount is based on the units of production or use of the asset during the period.

Residual Value

Residual Value is the estimated value that an asset will realize upon its sale at the end of its useful life, crucial for calculating depreciation for assets.