Consider the Following Pairs of Items

question 84

Multiple Choice

Consider the following pairs of items:
A.shampoo and conditioner
B.iPhones and earbuds
C.a laptop computer and a desktop computer
D.beef and pork
E.air-travel and weed killer
Which of the pairs listed will have cross-price elasticity of zero?

• A)a and b only
• B)c only since most people cannot do without computers
• C)e only
• D)none of the pairs listed

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Definitions:

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.

Restrictive Policy

A policy implemented by a company or government to limit or control certain activities, often to ensure financial stability or compliance with regulations.

Flexible Policy

A strategy or guideline that is adaptable to changes and allows for discretionary decisions based on circumstances.

Inventory Stock-outs

Occurrences when items are not available in inventory, leading to missed sales or delays.