Regarding Business Products

question 205

Multiple Choice

Regarding business products:

• A) The demand for consumer products is derived from the demand for business products.
• B) Total industry demand is fairly elastic.
• C) Demand facing individual sellers is always inelastic.
• D) Tax treatments of business products have no importance to business customers.
• E) The demand for business products is derived from the demand for consumer products.

---

Definitions:

Fixed Costs

Costs that remain constant regardless of the volume of goods or services produced by a business.

Net Income

The total profit of a company after operating expenses, taxes, and all other incomes and expenses have been deducted from total revenue.

Variable Costs

Costs that change in proportion with the level of production or sales volume, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and equipment leases.