The Demand for a Good Is Less Price Elastic

question 234

Multiple Choice

The demand for a good is less price elastic

• A) if closer substitutes are available.
• B) if the good is a luxury rather than a necessity.
• C) if the share of the good in the average consumer's budget is smaller.
• D) in the long run than in the short run.

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Definitions:

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders equity, indicating the profitability from the shareholders' perspective.

Debt To Assets Ratio

Measures the percentage of assets provided by creditors; computed by dividing total liabilities by total assets.

Total Assets

The combined value of everything a company owns, including cash, property, equipment, and inventory.

Total Debt

The sum of all liabilities, both current and long-term, that a company owes to creditors.