A 4 Percent Reduction in the Price of a Product

question 64

Multiple Choice

A 4 percent reduction in the price of a product has zero effect on the dollar amount of consumer expenditure on the product. The price elasticity of demand is

• A)zero.
• B)greater than zero.
• C)greater than zero but less than 1.
• D)equal to 1.

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Definitions:

Internal Controls

Processes and procedures implemented by a business to safeguard its assets, enhance the reliability of its accounting records, ensure compliance with laws, and promote efficient operations.

Accounting System

A structured process of recording, summarizing, and analyzing an organization's financial transactions.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to organize its financial transactions and prepare financial statements.

Beach Hut

A small, often simplistic shelter or dwelling located by the beach, typically used for recreational purposes.