Which of the Following Would Imply Elastic Demand

question 105

Multiple Choice

Which of the following would imply elastic demand?

• A) Price is low relative to purchasing power
• B) Nondurable product
• C) Low inflation rate
• D) Many substitute products
• E) All of these choices

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Definitions:

Controllable Costs

Expenses that a manager or business can influence or manage through decisions and actions.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, showcasing the profitability of a company.

Investment Center

A division or unit within a company for which the manager has control over costs, revenues, and investments, and is responsible for generating a return on the assets employed.

Income

The total amount of revenue or gain received by an individual or company, from various sources such as salary, investments, or business operations, before any deductions or taxes.