Holding Everything Else Constant, the Demand for a Good Tends

question 64

Multiple Choice

Holding everything else constant, the demand for a good tends to be more elastic

• A)the more substitutes there are for the good.
• B)the shorter the time period involved.
• C)the more consumers perceive the good to be a necessity.
• D)the less important the product is in consumers' budgets.

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Definitions:

Maturity Date

The maturity date is the specified date on a financial instrument at which the principal (or final payment) is due to be paid to the holder.

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.