We Need to Calculate the Price Elasticity of Demand Because

question 138

Multiple Choice

We need to calculate the price elasticity of demand because:

• A)producers need to know that consumers are more sensitive to price changes for some goods and services than for others.
• B)producers need to be able to predict the future preferences of their customers.
• C)producers need to know that consumers will have the same response to a price change regardless of the good or service.
• D)producers need to understand what it is their customers demand the most.

---

Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.

Debits

Debits refer to an accounting entry that results in either an increase in assets or expenses or a decrease in liabilities or equity on a company's balance sheet.

Ledger

A Ledger is a book or collection of accounts in which account transactions are recorded, classified, and summarized.

Wages Expense

The total cost incurred by a company for paying its employees, including salaries, wages, and other forms of compensation.