Which of the Following Is Most Likely to Have an Inelastic

question 21

Multiple Choice

Which of the following is most likely to have an inelastic demand curve?

• A) Automobile
• B) Vacation
• C) Nonelective surgery
• D) Recreational vehicle
• E) Computer

---

Definitions:

Exchange Gains

A financial outcome resulting from favorable changes in exchange rates, leading to increased value of foreign currency transactions or holdings prior to their conversion to a home currency.

Exchange Rate

The amount one currency is valued at when converting to a different one.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Loan

A financial arrangement where one party lends an asset, usually money, to another party under the condition of eventual repayment of the principal amount along with interest or charges.