Sonny and Cher Have a Net Worth of $35,000 and Total

question 16

Multiple Choice

Sonny and Cher have a net worth of $35,000 and total assets of $200,000. If they have credit card purchases of $1,200 and unpaid bills of $1,000, what will their long-term liabilities be?

• A) $115,000
• B) $140,000
• C) $142,200
• D) $162,800
• E) $165,000

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Definitions:

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price.

Relatively Inelastic

Describes a demand characteristic where a change in price leads to a smaller proportionate change in quantity demanded.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.

Price-Elastic Demand

The characteristic of demand for a good indicating that a change in price results in a relatively larger change in the quantity demanded.