For Which Good Would Consumers Be the Most Responsive to a Change

question 142

Multiple Choice

For which good would consumers be the most responsive to a change in price if good A has an elasticity of 0.05, good B has an elasticity of 0.8, good C has an elasticity of 1.8, and good D has an elasticity of 47?

• A) good A
• B) good B
• C) good C
• D) good D

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Definitions:

Process Cost Accounting System

A method of accounting used by companies that produce similar or identical units of product in batches employing a consistent process.

Continuous Production

A manufacturing process where production runs 24 hours a day, typically 7 days a week, without interruption.

Like Units

Units of product that are identical or nearly identical in their functions or physical properties.

Materials Requisition

The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.