The Demand for a Necessity Whose Cost Is a Small

question 179

Multiple Choice

The demand for a necessity whose cost is a small portion of one's total income is

• A)perfectly price inelastic.
• B)perfectly price elastic.
• C)relatively price inelastic.
• D)relatively price elastic.

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Definitions:

Regulatory Controls

Mechanisms put in place by a government or regulatory body to manage operations and behaviors within industries to ensure compliance with legal standards and to protect public interest.

Unlimited Liability

A legal obligation in business where owners are personally responsible for all debts of the business, extending to their personal assets.