Low or Negative Income Elasticities of Demand Indicate That the Items

question 49

Multiple Choice

Low or negative income elasticities of demand indicate that the items are

• A) luxuries.
• B) necessities.
• C) unrelated.
• D) substitutes.
• E) complements.

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Definitions:

Financing Nature

The characteristic manner or method in which a company prefers to finance its operations, typically equity, debt, or a hybrid.

Spontaneous Financing

Financing provided by current liabilities that arise automatically as a result of doing business.

Accounts Payable

Short-term liabilities a company owes to its creditors or suppliers, expected to be settled within one year.

Bank Loan

A sum of money borrowed from a bank that needs to be repaid with interest.