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:

Loan Against Inventory

A type of financing where a loan is given to a company based on the value of its inventory which serves as collateral.

Line of Credit

An arrangement between a financial institution and a client that establishes a maximum loan balance that the borrower can access.

Commitment Fee

A fee charged by a lender to a borrower for an unused credit line or undisbursed loan, serving as compensation for keeping funds available.

Commitment Fee

A fee charged by a lender to a borrower for an agreed loan that has not yet been utilized, ensuring the availability of the loan for a specified period.