If Demand Is Price Elastic,a Decrease in Price Results in A(n)

question 150

Multiple Choice

If demand is price elastic,a decrease in price results in a(n)

• A)decrease in total expenditure on the good
• B)unfavorable shift in tastes and preferences
• C)decrease in total cost for the seller
• D)increase in supply of the good
• E)increase in total revenue to the seller

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Definitions:

Direct Labor

The wages of employees directly involved in the production of goods or services, considered a variable cost.

Activity Level

Activity level refers to the volume of production or operations in a business. It is a determinant in both variable costing and activity-based costing, impacting how costs are allocated and managed.

Spending Variance

The difference between the budgeted amount of expenses and the actual amount spent.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are a part of the finished product.