Which of the Following Statements Is Correct

question 86

Multiple Choice

Which of the following statements is correct?

• A)The demand for medicine is more elastic than the demand for sailboats.
• B)The demand for iPads is more elastic than the demand for tablets in general.
• C)The demand for cell phones is more elastic over a short period of time than over a long period of time.
• D)All of the above are correct.

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Definitions:

Investment-Demand

The desire or willingness to allocate resources towards investment goods that are expected to yield returns in the future.

Interest Rate

The cost of borrowing money or the return for lending money, usually expressed as an annual percentage of the principal.

Effective Usury Laws

Regulations that set maximum interest rates on loans to protect consumers from excessively high costs.

Loanable Funds

The money available for borrowing in the financial markets, often coming from savings and influenced by interest rates.