Which of the Following Happens If Demand Is Elastic

question 21

Multiple Choice

Which of the following happens if demand is elastic?

• A)​As price goes up, consumer demand changes.
• B)The competition between organizations reduces.
• C)There is no substitute for a product in such case.
• D)​Purchasing power of the consumer decreases.

Recognize the role of context and psychological factors in economic transactions and decisions.

Compare and contrast neoclassical and behavioral economics' predictions in various scenarios.

Examine behavioral economics' explanations for common economic phenomena, including market dynamics and consumer behavior.

Understand the concept of the hedonic treadmill and its implications for economic well-being.

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Definitions:

Merchandise Inventory

Goods that a business holds for the purpose of resale to customers.

Multiple-Step Income Statement

A financial document that breaks down revenue, cost of goods sold, operating expenses, and net income into multiple steps or sections to show a detailed view of a company's financial performance over a specific period.

Administrative Expenses

These are costs related to the general operation of a business that are not directly tied to producing goods or services.

Selling Expenses

Costs associated with the marketing and selling of products or services, including advertising and sales commissions.