Demand for a Good Which Comprises a Relatively Large Share

question 42

Multiple Choice

Demand for a good which comprises a relatively large share of the consumer's budget tends to be

• A)inelastic.
• B)perfectly inelastic.
• C)elastic.
• D)perfectly elastic.

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Definitions:

Compounded Quarterly

The method of calculating interest where the interest is added to the principal sum four times a year.

Compounded Annually

A method of calculating interest where the interest earned over a year is added to the principal, and the sum becomes the principal for the next year.

Future Value

The value of an investment or loan at a specific date in the future, calculated using the current value and the expected rate of growth or interest.

Future Value

Future Value is the estimated amount of money that an investment will grow to over a specified period of time, assuming a certain rate of interest or rate of return.