The Elasticity of Demand Is

question 26

Multiple Choice

The elasticity of demand is

• A)measured in money (e.g., dollars).
• B)measured in units of the good (e.g., slices of pizza).
• C)unitless.
• D)measured in money/unit (e.g., 1.50 $/slice of pizza).

---

Definitions:

Factoring Accounts Receivable

The financial practice of selling accounts receivable to a third party at a discount to obtain immediate cash.

Installment Accounts Receivable

Receivables from sales where the customer makes regular payments over a period until the full purchase price is paid.

Dishonoring a Note

The failure to pay a promissory note when it comes due, resulting in a default.

Pledging Accounts Receivable

The practice of using accounts receivable as collateral for a loan.