As the Demand for VCR Players Has Fallen,so Has the Demand

question 200

Multiple Choice

As the demand for VCR players has fallen,so has the demand for blank VHS tapes because the demand for VHS tapes is an example of a(n) _____ demand.

• A) joint
• B) inelastic
• C) elastic
• D) fluctuating
• E) derived

---

Definitions:

Transactions Needs

The requirement for cash or liquid assets for the purpose of meeting immediate expenses or financial obligations.

Collection Float

The time period between when a payment is initiated by a payer and when the funds are available in the payee’s account.

Opportunity Costs

The benefit that is missed or foregone when choosing one alternative over another.

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and spreads.