When Demand Is Inelastic

question 29

Multiple Choice

When demand is inelastic,

• A) quantity sold does not increase when price decreases.
• B) selling one more unit of output causes marginal revenue to increase.
• C) selling one more unit of output cause total revenue to increase.
• D) Buyers are not very responsive to changes in the price of the product.
• E) The percentage change in quantity demanded will exceed the percentage change in price (in absolute value).

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Definitions:

Span Of Control

The number of subordinates that a manager or supervisor can effectively oversee, control, or manage directly.

Coordination

The organized arrangement of efforts and resources among different persons or groups to achieve a common goal.

Supervision

The process of overseeing and managing employees to ensure they are working effectively towards organizational goals.

Flatter Structures

Organizational structures characterized by fewer hierarchical levels, encouraging better communication and faster decision-making processes.