Of the Following Choices, Which Good Should Have the Most

question 28

Multiple Choice

Of the following choices, which good should have the most inelastic price elasticity of demand?

• A)Gasoline to a car owner.
• B)Cigarettes to a smoker.
• C)Insulin to an insulin-dependent diabetic.
• D)Apples to a vegetarian.

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Definitions:

Currency Exchange Rates

Exchange rates for currencies dictate how much one currency can be swapped for another, affecting international commerce and investment.

Operating Expense

Expenses incurred through normal business operations, such as rent, utilities, and payroll, excluding costs directly associated with production.

Remeasurement

The process of converting the financial statements of a foreign operation into the presentation currency of the reporting entity, often due to exchange rate changes.