If the Quantity Demanded of Restaurant Meals Increases by 20

question 243

Multiple Choice

If the quantity demanded of restaurant meals increases by 20% when income increases by 10%, the demand for restaurant meals is

• A) price sensitive.
• B) income-inelastic.
• C) income-elastic.
• D) price insensitive.

---

Definitions:

Interest Coverage

A financial metric used to determine how easily a company can pay interest expenses on outstanding debt with its before-tax income.

Quick Ratios

A liquidity metric that measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Obsolete Inventory

Items that can no longer be sold due to outdating, changes in market demands, or deterioration, often leading to their removal from inventory at a loss.

Current Ratio

A financial metric illustrating a firm's capacity to cover its short-term debts within a year, determined by dividing current assets by current liabilities.