Which of the Following Characteristics Would Describe a Product with an Inelastic

question 149

Multiple Choice

Which of the following characteristics would describe a product with an inelastic demand?

• A)The good is considered a necessity and the price of the product is high relative to the buyer's income.
• B)The good is considered a necessity and the price of the product is low relative to the buyer's income.
• C)The good is considered a luxury and the price of the product is high relative to the buyer's income.
• D)The good is considered a luxury and the price of the product is low relative to the buyer's income.

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Definitions:

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, used as the basis for z-scores.

Obtaining

The act of acquiring or getting possession of something.

Standard Normal

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis in statistical analysis for converting scores from any normal distribution.

Random Variable

A variable whose values depend on outcomes of a random phenomenon.