Demand for a Product Is Said to Be Elastic If

question 415

Multiple Choice

Demand for a product is said to be elastic if a change in price has:

• A) no effect on the volume of units sold.
• B) substantial effect on the volume of units sold.
• C) little effect on the volume of units sold.
• D) little effect on the volume of units produced.

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Definitions:

Accounts Payable

Liabilities of a business that represent its obligations to pay for goods or services it has received but not yet paid for.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Statement of Cash Flows

A financial report detailing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

Borrowing

The act of receiving something from someone with the intention of returning it or its equivalent.