When a Good Has Fewer Substitutes in Consumption, Is a Small

question 114

True/False

When a good has fewer substitutes in consumption, is a small part of the consumer's budget, and a long time has passed, demand for such a good is inelastic.

---

Definitions:

Premium Payment

The periodic amount paid by an insurance policyholder to an insurance company in exchange for the coverage provided by the policy.

Prepaid Workers' Compensation

An asset account that represents payments made in advance for workers' compensation insurance coverages.

Workers' Compensation Insurance Expense

The cost incurred by employers to provide insurance that covers employees' injuries or illnesses related to work.

Payroll Tax Deductions

Amounts withheld from an employee's wages by an employer for taxes, including federal and state income tax and FICA taxes.