Demand Is Classed as Inelastic If the Elasticity Coefficient Is

question 90

Multiple Choice

Demand is classed as inelastic if the elasticity coefficient is:

• A)less than one
• B)equal to one
• C)greater than one
• D)equal to zero

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Definitions:

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.

Unused Capacity

Resources available for use that are not being employed in production, often representing inefficiency.