Which of the Following Would NOT Affect a Good's Price

question 56

Multiple Choice

Which of the following would NOT affect a good's price elasticity of demand?

• A) whether the good is a necessity
• B) the proportion of the budget devoted to the good
• C) the number of substitute goods
• D) the ease of substituting between the goods
• E) the cost of producing the good

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Definitions:

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government as taxes.

Debt

A sum of money lent by one party to another, which has to be repaid at a future date, typically with added interest.

Debt Ratio

A ratio that evaluates how much a business relies on debt financing, calculated through the division of the company's total liabilities by its total assets.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal.