For the First Quarter of the Year, the Price of the Company's

question 104

Multiple Choice

For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is

• A)stable.
• B)elastic.
• C)marginal.
• D)inelastic.
• E)unstable.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and receive cash from the sale.

Time Horizons

The length of time over which an organization or individual projects, plans, or expects to achieve its goals.

HR Forecasting

The process used in human resources planning to predict an organization’s future need for employees based on its business goals and strategies.

Attrition

The process of reducing an HR surplus by allowing the size of the workforce to decline naturally because of the normal pattern of losses associated with retirements, deaths, and voluntary turnover.