Gabriel's Demand for Chocolate Bars Is Inelastic

question 106

Multiple Choice

Gabriel's demand for chocolate bars is inelastic.If the price of chocolate bars increases,he will ________.

• A) spend the same amount of money on chocolate as before
• B) spend less amount of money on chocolate than before
• C) spend more amount of money on chocolate than before
• D) buy the same number of chocolate bars as before

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Definitions:

Premium on Bonds Payable

The excess of a bond's sale price over its principal amount.

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders until the debt’s maturity date.

Installment Note

A debt or loan that is repaid over time with a set number of scheduled payments, typically including both principal and interest.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, payable over a certain period to the lender as compensation for the loan.