A Good That Has Highly Elastic Demand Is Most Likely

question 23

Multiple Choice

A good that has highly elastic demand is most likely to:

• A) have a large number of substitutes.
• B) be purchased by low-income consumers.
• C) be sold at a high price level.
• D) be produced by a single firm.
• E) be a necessary good.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.

Operating Expenses

Costs associated with a company's day-to-day operational activities, excluding direct labor, direct materials, and direct expenses.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future.

Accrued Expenses

Expenses incurred but not yet paid in cash or recorded.