When the Demand for a Good Is Inelastic, That Good

question 40

Multiple Choice

When the demand for a good is inelastic, that good is likely to have:

• A)many close complements.
• B)few close complements.
• C)many close substitutes.
• D)few close substitutes.

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Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Incorporation Date

The specific date on which a legal entity was legally created or incorporated, officially beginning its existence as a corporate body.

Declaration Date

The declaration date is when a company's board of directors announces the issuance of a dividend, specifying the amount and the payment date.

Payment Date

The specific date set by a company on which dividends will be paid out to shareholders or debt obligations to lenders will be met.