Of the Following, Which Is the Best Example of Good

question 187

Multiple Choice

Of the following, which is the best example of good with a perfectly inelastic demand?

• A)the demand for tickets in New York City when the Mets or Yankees are in the World Series
• B)the demand for gasoline
• C)a diabetic's demand for insulin
• D)the demand for a college education by a student who has a full scholarship to an Ivy League school

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Definitions:

Redemption Value

Redemption value is the amount payable to a security holder upon its maturity or the amount to redeem a bond before its maturity.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be issued on common stock.

Dividends in Arrears

Dividends on preferred stock that have not been paid in the scheduled time but are still owed to shareholders.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities.