If Your Demand for a Good Is _______, Then a 1

question 129

Multiple Choice

If your demand for a good is _______, then a 1 per cent fall in its price will lead you to _______ your expenditure on the good.

• A) unit elastic; increase
• B) inelastic; increase
• C) inelastic; decrease
• D) elastic; decrease

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Definitions:

Ending Inventory

The total value of all inventory that a business has in stock at the end of an accounting period.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product.

Inventory

Goods and materials held by a business for the purpose of resale or production.