Which of the Following Is True

question 184

Multiple Choice

Which of the following is true?
I.The easier it is to find substitutes for a good,the more price elastic the demand for the good is.
II.The demand for a good is more price elastic the smaller the proportion of income spent on it.
III.If demand is price elastic,lowering the price leads to a decrease in total revenue.

• A) Only I
• B) Only II
• C) Only III
• D) I and II
• E) I and III

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Definitions:

Child Support Payments

Payments made by a noncustodial parent to a custodial parent, guardian, or state, intended to facilitate the care and support of their children.

Cash Payments

Transactions where the payment for goods or services is made using currency or banknotes rather than checks or electronic transfers.

House Hunting Expenses

Costs incurred while searching for a new home, often not deductible on U.S. federal tax returns except in specific relocating job circumstances.

Lodging

Accommodation in a residence or hotel for a short-term stay, often considered for deductible travel expenses in business contexts.