In a Matching Capacity Strategy,capacity Is Increased at Relatively the Same

question 63

True/False

In a matching capacity strategy,capacity is increased at relatively the same rate that demand increases.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumers' income.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often indicating proportionality.

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

A rephrased definition: The responsiveness of demand for an item to changes in the income of the people demanding the item.