When Economists Say the Demand for a Good Is Highly

question 119

Multiple Choice

When economists say the demand for a good is highly inelastic, they mean that

• A) even if the price rose substantially, suppliers would be unwilling to offer much more of the good.
• B) the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the long run.
• C) consumers will respond to a change in the price of the good by purchasing substantially more of it.
• D) a large (percentage) change in the price of a good will result in only a small (percentage) change in the quantity demanded.

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Definitions:

Functional Structure

A method of organizing a company where activities are grouped based on their function, leading to departments like marketing, finance, and HR.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.

Bureaucratic Control

Control accomplished through rules and routines.

Standardized Rules

Established and uniform procedures and criteria that apply to all relevant parties in a given context to ensure consistency and fairness.