Holding Everything Else Constant, the Demand for a Good Tends

question 64

Multiple Choice

Holding everything else constant, the demand for a good tends to be more elastic

• A)the more substitutes there are for the good.
• B)the shorter the time period involved.
• C)the more consumers perceive the good to be a necessity.
• D)the less important the product is in consumers' budgets.

---

Definitions:

Disclosure

The act of making new or important information known, especially facts that may influence a decision or affect the perception of a situation.

Debt-Paying Ability

A measure of a company's financial capacity to meet its long-term obligations, indicating its financial stability and risk level.

Quick Ratio

A financial metric indicating a company's ability to meet short-term obligations with its most liquid assets, providing insight into financial health.

Current Ratio

A financial metric assessing a firm's capability to settle its short-term obligations using its current assets.