Which of the Following Factors Will Make the Demand for a Product

question 277

Multiple Choice

Which of the following factors will make the demand for a product relatively elastic?

• A)There are few substitutes.
• B)The time interval considered is long.
• C)The good is considered a necessity.
• D)Purchases of the good require a small portion of consumers' budgets.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Write Off

The process of recognizing that a portion of a company's assets has become worthless and expensing them to the income statement.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.