Which of the Following Statements Is False

question 200

Multiple Choice

Which of the following statements is false?

• A)Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
• B)Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
• C)Price elasticity of demand and the slope of a demand curve are the same thing.
• D)The more substitutes for a good, the higher the price elasticity of demand, ceteris paribus.

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Definitions:

Revenues

The income generated from normal business operations and other activities over a period of time.

Cost Flow Assumption

An accounting principle that determines the method used to assign costs to inventory and to goods sold.

Gross Profit

The gap between income and the expense of products sold, reflecting a company's ability to efficiently handle its workforce and materials during manufacturing.

Ending Inventory

The sum total of items ready for sale calculated at the end of an accounting cycle.