Which of the Following Would Result in Higher Price Elasticity

question 39

Multiple Choice

Which of the following would result in higher price elasticity of good X?

• A)more substitutes for good X
• B)a shorter period of time has passed since the change in the price of good X
• C)lower costs of labor in the production of good X
• D)good X is more of a necessity than a luxury

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Definitions:

Product Life Cycle

The stages a product goes through from conception, through design, manufacture, launch, growth, maturity, and eventually, decline and discontinuation.

Operations Managers

Individuals responsible for overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.

Adding Capacity

The process of increasing the ability of a system or process to produce output, either by adding resources or optimizing current ones.

Robust Design

A design that can be produced to requirements even with unfavorable conditions in the production process.