The Demands for Wheat, Soybeans, Milk, and Eggs Tend to Be

question 174

Multiple Choice

The demands for wheat, soybeans, milk, and eggs tend to be

• A)price inelastic
• B)price elastic
• C)price inelastic only in the long run
• D)price elastic only in the short run
• E)price elastic only in the long run

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Definitions:

Variable Cost

Costs that change in proportion to the activity of a business such as production volume or sales.

Unit Variable Cost

The cost associated with producing one additional unit of a product, including labor and materials, which varies with the production volume.

Monthly Expenses

The total amount of money spent by an individual or organization within a month, covering all necessary and discretionary expenses.

Unit Variable Cost

The cost associated with producing one additional unit of a product, not including fixed costs.