Which Statement Does NOT Explain the Inelastic Demand for Bread

question 70

Multiple Choice

Which statement does NOT explain the inelastic demand for bread?

• A) The percentage of the budget spent on bread is small.
• B) Few close substitutes for bread exist.
• C) Bread is a necessity for most consumers.
• D) Bread sales decline significantly in the short run as bread prices rise.

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Definitions:

Lower Price

A strategy or situation where the cost of goods, services, or commodities is reduced to make them more attractive to buyers.

Maquiladoras

Factories located in Mexico, typically near the US border, that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then export the assembled product.

Foreign Trade Zones

Designated areas where goods can be imported, stored, handled, manufactured, or reconfigured without being subject to customs duty.

Labor Costs

The total expenditures related to compensating employees, including wages, benefits, and taxes.