A Less Elastic Demand for a Good Could Result from

question 6

Multiple Choice

A less elastic demand for a good could result from

• A)strong supply-side reactions
• B)an increased number of available substitutes
• C)lower consumer incomes
• D)a longer time horizon
• E)a shorter time horizon

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Definitions:

Direct Labor

The labor cost of workers directly involved in the production of goods or services.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process, costing each process separately.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units that could have been produced with those costs.

Direct Materials

Materials in their unprocessed state that can be directly linked to the production of a particular item.