For Which One of the Following Is Demand Likely to Be

question 45

Multiple Choice

For which one of the following is demand likely to be most inelastic?

• A)diamonds
• B)insulin for a diabetic
• C)potatoes
• D)gasoline
• E)books

Understand the potential catalysts for a Third Industrial Revolution including the impact of new technologies and cost changes.

Comprehend the basic principles of cost in economics, including the distinction between fixed and variable costs.

Grasp the concept of economic profit and how it is calculated in relation to accounting costs and total revenue.

Identify and explain the significance of the law of diminishing returns in the context of productivity and cost.

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Definitions:

Sales Budget

A detailed projection of a company’s sales revenue for a certain period, often used as a basis for production, purchasing, and staffing plans.

Service Firm

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Products Purchase

The expenditure a company makes to buy goods that will be sold to its customers.

Manufacturing Overhead Budget

An estimation of all manufacturing costs, excluding direct labor and direct materials, planned for a specific period.