The Demand for a Pack of Gum Is ______________ Than

question 14

Multiple Choice

The demand for a pack of gum is ______________ than is the demand for a steak because _______________.

• A) less price elastic; a pack of gum requires a smaller portion of one's income.
• B) more price elastic; a pack of gum requires a smaller portion of one's income.
• C) less price elastic; a pack of gum is more of a luxury.
• D) more price elastic; a pack of gum is more of a luxury.

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Definitions:

Discount on Bonds Payable

The discrepancy between what a bond is actually worth and the lower price it is sold for.

Bonds Payable

A long-term debt instrument issued by corporations or governments, indicating the amount owed to bondholders, including the terms of interest payments and the maturity date.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.

Bonds Payable

A financial liability indicating the amount a corporation or government is obliged to pay back to bondholders either upon maturity or over a defined period of time.