The Less Elastic Demand Is, the Higher the Consumer Surplus

question 163

True/False

The less elastic demand is, the higher the consumer surplus ceteris paribus.

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Definitions:

Cost Flow Assumption

An accounting method that determines the value of remaining inventory and the cost of goods sold, such as FIFO or LIFO.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some numbers more than others.

FOB Shipping Point

This term indicates that the buyer is responsible for the goods and their shipping costs as soon as the goods leave the seller's premises.