Price Elasticity of Demand Is Determined by a Number of Factors

question 205

Multiple Choice

Price elasticity of demand is determined by a number of factors such as the availability of substitutes, the cash outlay of the purchase relative to a person's disposable income, and

• A)the stage of the product or service in its product life cycle.
• B)the degree of carrying costs for the manufacturer or distributor.
• C)the financial resources of the organization itself.
• D)the ability of the organization to meet sudden increases in demand.
• E)the necessity of the product or service.

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Definitions:

Financing Section

A part of financial statements that includes activities related to issuing debt, repayment of debt, issuing equity, and paying dividends.

Cash Outflow

Pertains to the movement of money out of a business, primarily through expenses, payments to creditors, or investments, leading to a decrease in cash balance.

Financing Activity

Involves transactions related to a business's funding, including obtaining or repaying capital, issuing shares, and paying dividends.

Investing Activities

Financial transactions related to the purchase and selling of long-term assets and other investments not considered as cash equivalents.