Which of the Following Effects Would Generally Make Demand Curves

question 76

Multiple Choice

Which of the following effects would generally make demand curves more inelastic?

• A) "You can't take it with you" effect
• B) "Other people's money" effect
• C) Both effects
• D) Neither effect

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Definitions:

Dividend Distributions

Payments made by a corporation to its shareholders, usually derived from the company's earnings.

Cumulative Voting

A voting system that allows shareholders to concentrate their votes on a single candidate for the board of directors.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that must be paid out before dividends to common stockholders and which typically does not have voting rights.