Table 4.1 The Union Manufacturing Company Is Producing Two Types of Products

question 93

Multiple Choice

Table 4.1
The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow:

Both products are produced on the same machine, called Mark I.
-Using Table 4.1, what is the total number of hours required of Mark I equipment for the next year?

• A) fewer than 29,000 hours
• B) between 29,000 and 30,000 hours
• C) between 30,000 and 31,000 hours
• D) more than 31,000 hours

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, within a specified time period.

Quantity Supplied

The amount of a product or service that producers are willing and able to sell at a given price level during a specific time period.

Inelastic Demand

A market situation in which the demand for a product does not significantly change with its price increase or decrease.