If Demand Hardly Changes with a Small Change in Price

question 51

Multiple Choice

If demand hardly changes with a small change in price, we say that the demand is

• A) profitable.
• B) elastic.
• C) marginal.
• D) inelastic.
• E) equal.

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Definitions:

Machine-Hours

A measure of the amount of time machinery is in operation, used in manufacturing to allocate costs based on machine usage.

Overhead Rate

The rate at which overhead costs are allocated to products or services, typically based on direct labor hours, machine hours, or another allocation base.

Direct Labor-Hours

The total hours worked directly on manufacturing goods or providing services.

Manufacturing Overhead

Indirect costs related to manufacturing that do not include direct materials or direct labor.