Commodities Are Most Likely to Show Inelasticity When They Are

question 66

Multiple Choice

Commodities are most likely to show inelasticity when they are

• A) independents.
• B) necessities.
• C) luxuries.
• D) dependents.

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Definitions:

Direct Materials

Raw materials that are consumed in the production process and can be directly attributed to specific products.

Production Labor

The workforce involved in the manufacturing process, whose wages are considered a direct labor cost affecting the cost of goods sold.

Direct Cost

Expenses that can be directly linked to the production of specific goods or services.

Indirect Cost

Costs that are not directly traceable to a specific product or activity, such as overhead, administration, and salaries for management.