When Is Demand Said to Be Unit Elastic

question 199

Multiple Choice

When is demand said to be unit elastic

• A)when the quantity demanded changes by the same percentage as the price
• B)when the quantity demanded changes by a larger percentage than the price
• C)when the quantity demanded changes by a smaller percentage than the price
• D)when the quantity demanded does not respond to a change in price

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Definitions:

Direct Materials Cost

The cost of raw materials and components used directly in the manufacturing of a product.

Schedule Of Cost Of Goods Sold

A schedule that contains three elements of product costs—direct materials, direct labor, and manufacturing overhead—and that summarizes the portions of those costs that remain in ending Finished Goods inventory and that are transferred out of Finished Goods into Cost of Goods Sold.

Work In Process

Inventory items that are in the production process but not yet completed; often abbreviated as WIP.

Manufacturing Overhead Cost

Manufacturing overhead cost includes all indirect factory-related expenses incurred during the production process, such as maintenance, utilities, and quality control.