The Demand for a Subway Ride Is Likely _____ Price

question 79

Multiple Choice

The demand for a subway ride is likely _____ price elastic than the demand for a car because _____.

• A) less; a subway ride requires a smaller portion of one's income
• B) more; a subway ride requires a smaller portion of one's income
• C) less; consumers will take a longer time to adjust to a change in the price of a subway ride
• D) more; consumers will take a longer time to adjust to a change in the price of a subway ride

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Definitions:

Note Payable

A written promise to pay a specific sum of money to a creditor at a future date, often including interest payments.

Discount

A reduction in the price of goods or services, typically offered to stimulate sales or to reward customer loyalty.

Normal Credit Balance

Refers to the expected positive balance in accounts that primarily capture credits, such as liabilities, revenues, and equity accounts.

Long-Term Liabilities

Obligations of a company that are due more than one year in the future, including bonds payable, long-term leases, and pension obligations.