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Insurance, Dry Cleaning, and Hotel Accommodations Have Intrinsic Value Resulting

question 40

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Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?


Definitions:

Elasticity

The indicator of the responsiveness of the demand or supply of a product to shifts in key factors like price or income.

Perfectly Elastic

A perfectly elastic demand or supply refers to a situation where the quantity demanded or supplied changes infinitely in response to any change in price, represented by a horizontal line on a graph.

Tax Burden

The measure of taxes that an individual or business is required to pay, expressed as a percentage of income or profit.

Tax Increase

A rise in the rate at which individuals or businesses are taxed by the government.

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