If the Percentage Change in Quantity Demanded of a Good

question 164

Multiple Choice

If the percentage change in quantity demanded of a good is less than the percentage change in income,then the good is said to be

• A) income elastic.
• B) income inelastic.
• C) income unit elastic.
• D) price elastic.
• E) price inelastic.

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Definitions:

Cost Volume Profit Analysis

A financial analysis method used to determine how changes in costs and volume affect a company's operating income and net income.

Cost Behaviours

The way in which different costs change in response to variations in the level of business activity or production volume.

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.

Target Sales Volume

The specific quantity of products a company aims to sell within a certain period to achieve its sales objectives and ensure profitability.