Which of the Following Transactions Represents the Purchase of a Final

question 231

Multiple Choice

Which of the following transactions represents the purchase of a final good?

• A)Starbucks purchases coffee beans.
• B)Delta buys a new European-made jetliner.
• C)Apple computer buys computer processors from Intel.
• D)Your father buys a new John Deere riding lawn mower.

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Definitions:

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to changes in price, often applicable to necessities or products with few substitutes.

Board of Regents

An administrative body that governs institutions of higher education, overseeing budgetary matters, academic policies, and major appointments.

Elastic Demand

A situation in which the quantity demanded of a good or service is highly responsive to changes in its price.

Price Cut

A reduction in the selling price of goods or services, usually aimed at increasing demand or facing competition.