If the Demand for Good X Is Inelastic in the Short

question 121

Multiple Choice

If the demand for good X is inelastic in the short run, then it will be __________ in the long run (as more time passes) .

• A)inelastic
• B)elastic
• C)unit elastic
• D)perfectly inelastic
• E)There is not enough information to answer the question.

---

Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the expenses incurred to convert raw materials into finished goods.

Process

A sequence of activities linked together for performing a particular task.

Perpetual Inventory Accounts

An inventory system that continuously keeps track of inventory levels and costs, updating the accounts after each purchase or sale.

Subsidiary Ledgers

Detailed records that support summaries contained in the general ledger, often used for accounts receivable and payable.