If Ice Cream Has an Absolute Price Elasticity of Demand

question 131

Multiple Choice

If ice cream has an absolute price elasticity of demand that is greater than 1, then the demand for ice cream is

• A) elastic.
• B) inelastic.
• C) perfectly inelastic.
• D) unit elastic.

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Definitions:

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual installments.

Effective Tax Rate

The actual rate at which an individual or a corporation is taxed, calculated by dividing the total tax paid by the taxable income.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and equity of a parent company and its subsidiaries.

Non-controlling Interest

A shareholder's equity in a subsidiary that is not attributable to the parent company, representing minority ownership.