Other Things Being Equal, Demand Is Less Elastic

question 358

Multiple Choice

Other things being equal, demand is less elastic

• A) the more expensive the good is.
• B) the smaller the percentage of a total budget that a family spends on a good.
• C) the longer is the time period for adjustment.
• D) the more substitutes a good has.

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Definitions:

Operating Data

Information related to the day-to-day operations of a company, such as sales revenue, production costs, and labor expenses.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used in breakeven analysis and to assess operational efficiency.

Profit Center Manager

An individual responsible for a division or unit within an organization, focusing on generating profit and controlling costs.

Performance Measure

Indicators used to evaluate and assess the effectiveness, efficiency, and success of an organization's activities or employee's performance.