If Quantity Demanded Rises Only Slightly Following a Moderate Price

question 46

Multiple Choice

If quantity demanded rises only slightly following a moderate price cut,then demand is:

• A) Elastic.
• B) Inelastic.
• C) Unitary elastic.
• D) Abnormal.

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Definitions:

Adjusting Entry

Journal entries made at the end of an accounting period to update accounts for accurate financial reporting.

Closing Entry

A journal entry made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the books for the next period.

Real Account

Another term for permanent account in accounting, referring to accounts that are not closed at the end of the accounting period and carry their ending balance into the next period.

Nominal Account

A nominal account is a temporary financial account that shows the incomes, gains, expenses, or losses over an accounting period, and is reset to zero at the beginning of each new period.