Which of the Following Factors Will Make the Demand for a Product

question 31

Multiple Choice

Which of the following factors will make the demand for a product relatively elastic?

• A) There are few substitutes.
• B) The time interval considered is long.
• C) The good is considered a necessity.
• D) Purchases of the good require a small portion of consumers' budgets.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset up to a specific point in time.

Equipment Costing

The process of determining the total cost associated with acquiring, operating, maintaining, and disposing of equipment.

Operating Activities Section

Part of the cash flow statement that shows cash inflows and outflows related to the primary, day-to-day operations of the business.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.