Why Might the Demand for Massages Be More Elastic Than

question 87

Multiple Choice

Why might the demand for massages be more elastic than the demand for chiropractic adjustments?

• A) Relative to massages, there are more substitutes for chiropractic adjustments.
• B) People get massages in the short run and chiropractic adjustments in the long run.
• C) Massages are much cheaper than chiropractic adjustments.
• D) Massages tend to be luxuries and chiropractic adjustments tend to be necessities.

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Definitions:

Operating Results

The financial outcomes achieved from a company's core business operations.

Variable Factory Overhead

Costs of production that fluctuate with the level of output, including utilities and materials not directly tied to a product's manufacture.

Controllable Variance

The difference between actual and budgeted figures that is within the control of a manager, used for assessing performance.

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.