A Demand for a Product Is More Inelastic

question 17

Multiple Choice

A demand for a product is more inelastic

• A)When it has many close substitutes
• B)In the long-run
• C)When it has many complements
• D)None of the above

Apply critical thinking to determine the best hedging strategy based on given financial scenarios.

Understand and apply the accounting principles related to foreign currency transactions.

Record and report transactions involving foreign currency using the appropriate exchange rates.

Understand the concept of a forward contract and its use in hedging foreign currency risk.

---

Definitions:

Conditioned Stimulus

An initially indifferent stimulus which, after being combined with an unconditioned stimulus, triggers a conditioned response.

Unconditioned Stimulus

In traditional conditioning, a stimulus instinctively and spontaneously elicits a response without needing any previous learning.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex; in psychology, it also refers to the ability to perceive and differentiate between stimuli.

Stimulus Generalization

The process in which a response that is originally elicited by a specific stimulus also becomes elicited by other, similar stimuli.