Demand Is More Elastic for an Item Which Represents a Relatively

question 66

True/False

Demand is more elastic for an item which represents a relatively large part of a person's total budget.

---

Definitions:

Break-Even Point

The point where total costs equal total revenue, meaning no profit or loss is incurred.

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

ATC

Average Total Cost, which is the total cost per unit of output incurred when producing goods or services. It includes both fixed and variable costs.

MR

An abbreviation for Marginal Revenue, which is the additional income from selling one more unit of a good or service.