If Consumer Purchases of a Good Are Not Very Sensitive

question 194

Multiple Choice

If consumer purchases of a good are not very sensitive to the price of the good, economists say the demand for the good is relatively

• A) inelastic.
• B) elastic.
• C) robust.
• D) inverse.

---

Definitions:

Directly Related

Having a direct connection or relevance to another factor, typically implying a cause-and-effect relationship or close association.

Direct Materials

Raw materials that can be directly attributed to the production process of a specific product.

Direct Labor

The cost associated with the work of employees directly involved in the production of goods or services.

Departmental Overhead Rate Method

A costing method that calculates different overhead rates for each department within a factory, based on each department's specific operational costs.