The Demand for a Particular Brand of Apple Juice Is

question 151

Multiple Choice

The demand for a particular brand of apple juice is likely to be:

• A) very price elastic, because there are many close substitutes available.
• B) less price elastic, because there are many close substitutes available.
• C) very price elastic, because the adjustment time is so fast.
• D) less price elastic, because the adjustment time is so slow.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Profit-maximizing Output

The production level where maximum profit is achieved by a company, when the marginal cost matches the marginal revenue.

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.

Lawn-mowing

The process of cutting grass to a uniform length, typically performed as a maintenance activity for aesthetic and health reasons in gardens and lawns.