The Elasticity of Demand for Cucumbers Is 3, While the Elasticity

question 125

Multiple Choice

The elasticity of demand for cucumbers is 3, while the elasticity of demand for salt is 0.2. Thus, ceteris paribus, the demand for labor to pick cucumbers will be _____ compared to the demand for labor to mine salt.

• A) more elastic
• B) less elastic
• C) equally elastic
• D) more inelastic

---

Definitions:

Net Cash

Remaining cash after taking into account the cash received and spent.

Operating Activities

These are day-to-day actions that a company engages in, which are directly related to its primary operations such as sales, provision of services, and production.

Prepaid Expenses

Costs paid for in advance of receiving the benefit, recorded as assets until used or consumed.

Income Taxes Payable

The amount of income taxes a company owes to the government but has not yet paid.