The Larger the Share of a Good in a Consumer's

question 163

Multiple Choice

The larger the share of a good in a consumer's budget, holding everything else constant, the

• A)more price elastic is a consumer's demand.
• B)more vertical is a consumer's demand curve.
• C)more price inelastic is a consumer's demand.
• D)more unit elastic is a consumer's demand.

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Definitions:

Disposal of an Asset

The process of selling, scrapping, or otherwise removing an asset from the company's balance sheet due to its disposal, sale, or obsolescence.

Depreciation Recorded

The process of allocating the cost of a tangible asset over its useful life to account for the loss of value over time.

Diminishing-Balance Method

A method of calculating depreciation of an asset, where the asset loses value at a fixed percentage rate every year over its useful life.

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in a linear fashion.