Demand Will Be More Inelastic When

question 156

Multiple Choice

Demand will be more inelastic when

• A) the time the consumer has to adjust to price changes is short.
• B) the price of the good is high.
• C) the number of good substitutes is large.
• D) the consumption of the good is not very essential.

---

Definitions:

Raw Materials

Raw materials are the basic materials from which products are manufactured or made, often used in the initial stages of the production process.

Factory Overhead

Every manufacturing-related expense, apart from direct labor and materials.

Debit Balance

A situation in accounting where the sum of debits exceeds the sum of credits, often indicating expenses or assets.

Credit Balance

The amount residing in a financial account that signifies the sum that a financial institution owes to the customer.