Figure 6-5 If the Demand Curve in Figure 6-5 Is Unit Elastic

question 209

Multiple Choice

Figure 6-5

If the demand curve in Figure 6-5 is unit elastic, then total expenditure at A is ____ total expenditure at B.

• A)greater than
• B)less than
• C)equal to
• D)less elastic than

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Definitions:

Indirect Materials

Materials that are used in the production process but are not directly traceable to a finished product.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be directly traced to the goods being produced.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production based on a specific activity base.

Direct Labor-Hours

The total hours worked directly on the production of goods.