On December 10 the Price of a Christmas Tree Is

question 489

Multiple Choice

On December 10 the price of a Christmas tree is $50 and 100 trees are purchased. On December 20 the demand for Christmas trees decreases so that the price falls to $30 and 20 trees are purchased. From this set of facts, the

• A) demand for Christmas trees is price inelastic.
• B) demand for Christmas trees is price elastic.
• C) supply of Christmas trees is inelastic.
• D) supply of Christmas trees is elastic.

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Definitions:

Merchandise Inventory

Finished goods held for sale by a company in the ordinary course of business; also known as stock-in-trade.

Bank Credit Card Sales

Transactions in which the purchase is made using a bank-issued credit card, processed through the banking network.

Credit Card Expense

Charges and fees incurred from the use of a credit card, including purchases, cash advances, and interest charges.

Invoice Terms

The conditions specified on an invoice, including the payment due date, any available discounts for early payment, and penalties for late payment.