Which of the Following Would Tend to Make Demand INELASTIC

question 28

Multiple Choice

Which of the following would tend to make demand INELASTIC?

• A) the amount of time analyzed is quite long
• B) there are lots of substitutes available
• C) the product is highly durable
• D) the proportion of the budget spent on the item is very small
• E) no one really wants the product at all

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Definitions:

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting the usage and wear and tear of the asset.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually used in preparing financial statements.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net profit or loss.

Exchange Rates

The rate at which one currency can be exchanged for another, which affects international trade and investments.