Of the Following Choices, Which Good Should Have the Most

question 28

Multiple Choice

Of the following choices, which good should have the most inelastic price elasticity of demand?

• A)Gasoline to a car owner.
• B)Cigarettes to a smoker.
• C)Insulin to an insulin-dependent diabetic.
• D)Apples to a vegetarian.

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Definitions:

Capital Assets

Long-term assets acquired for use in a business, intended for the purpose of earning income and not for resale.

Collections

The process of pursuing payments of debts owed by individuals or businesses to creditors or service providers.

Public Exhibition

An event where works of art, new products, or other items of interest are displayed to the general public.

Capitalizing

Capitalizing is the process of recording a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.