Which of the Following Statements About Price Elasticity of Demand

question 301

Multiple Choice

Which of the following statements about price elasticity of demand most accurate?

• A)The more substitutes a product has,the more likely it is to be price elastic.
• B)All products show some price inelasticity.
• C)Nondiscretionary, (necessary)purchases are price elastic.
• D)With inelastic demand,reducing price has a very large impact on revenues.
• E)With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior.

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Unredeemed Certificates

Financial or legal documents representing a right or obligation that have not yet been claimed or exercised by the holder.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts for the next period.

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