Demand for a Given Good Is Inelastic, So It Follows

question 76

Multiple Choice

Demand for a given good is inelastic, so it follows that if price rises, __________ will rise, too.

• A)quantity demanded
• B)total revenue
• C)total cost
• D)income
• E)supply

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Definitions:

Variable Overhead Rate

Variable overhead rate is the ratio of variable overhead costs incurred for every unit of activity or a specific measure of activity, such as labor hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods and services.

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.