For a Particular Good,a 10 Percent Increase in Price Causes

question 470

Multiple Choice

For a particular good,a 10 percent increase in price causes a 5 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

• A) There are many close substitutes for this good.
• B) The good is a necessity.
• C) The market for the good is narrowly defined.
• D) The relevant time horizon is long.

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Definitions:

Accounting Equation

The fundamental principle of accounting that represents the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, essentially representing the ownership interest held by shareholders.

Increase Assets

Actions or transactions that cause a rise in the total value of a company's assets.