Unit Elastic Demand Occurs When

question 94

Multiple Choice

Unit elastic demand occurs when

• A)a one-unit increase in price leads to a one-unit decrease in quantity demanded
• B)a 1% increase in price leads to a one-unit decrease in quantity demanded
• C)price elasticity of demand is positive
• D)price elasticity of demand is exactly zero
• E)price elasticity of demand is exactly -1

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Definitions:

Indirect Costs

Expenses that are not directly tied to the production of goods or services, such as overhead, administration, and salaries.

Salespersons' Salaries

Fixed or variable payments made to sales staff as compensation for their services, typically involving a base salary and possibly commissions.

Direct Costs

Costs that can be directly traced to a specific product, project, or activity without any ambiguity.

Indirect Costs

Costs that are not directly attributable to the production of goods or services and cannot be directly applied to a specific product, service, or project.