Why Might the Demand for Business Products Be INELASTIC, While

question 283

Multiple Choice

Why might the demand for business products be INELASTIC, while the demand facing individual sellers of those products is extremely ELASTIC?

• A) Because total demand for business products often exceeds supply.
• B) Because most business producers use haggling in their buying.
• C) Because the demand for business products is derived, and some industries have many sellers of essentially homogeneous products.
• D) Because the industry demand is rising.
• E) None of these alternatives is correct.

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Definitions:

Withdrawals

The act of taking money out of an account.

Tax Free

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Variable Annuity

A type of annuity plan that allows the contract owner to choose investments which then dictate the fluctuation of the payout amounts.

Life Expectancy

Life Expectancy is the statistical measure that reflects the average period a person is expected to live, based on demographic factors.