When the Price of a Product Increases, the Passage of Time

question 61

Multiple Choice

When the price of a product increases, the passage of time usually causes the price elasticity of demand for the product to become

• A) less elastic.
• B) more elastic.
• C) smaller and smaller in an absolute value.
• D) approximately equal to zero in the long run because of scarcity.

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Definitions:

Dollar Amounts

A value or quantity expressed in terms of dollars, used to denote the price, cost, or value of something.

Flexible Budgeting

A budgeting process that adjusts to different levels of operation activities or volumes.

Direct Labor

The workforce directly involved in manufacturing products or providing services, whose costs are directly assignable to the goods or services produced.

Supervisor Salaries

Compensation paid to employees who are in charge of overseeing and managing other workers.