Which of the Following Is Likely to Have the Smallest

question 155

Multiple Choice

Which of the following is likely to have the smallest price elasticity of demand?

• A) an automobile
• B) a new automobile
• C) a new Ford automobile
• D) a new Ford Mustang

---

Definitions:

Liability Account

An account on the balance sheet that represents obligations to pay debts or amounts owing to lenders, suppliers, employees, or other creditors.

Rent Received

Income earned from leasing out property or equipment to another party.

Materiality

A principle that dictates that all significant information that could influence the decision-making process of users of financial statements should be disclosed.