The Price of Plums Falls by 7 Percent and Quantity

question 33

Multiple Choice

The price of plums falls by 7 percent and quantity of plums demanded increases by 6.75 percent. We conclude that the demand for plums is

• A)inelastic.
• B)perfectly elastic.
• C)perfectly inelastic.
• D)elastic.
• E)unit elastic.

---

Definitions:

Spending Variance

The difference between the budgeted or planned amount of spending and the actual amount spent over a specific period, often analyzed in budgeting and financial management.

Actual Level

The real, measured level of output, performance, or activity experienced by an organization, as opposed to projected or estimated levels.

Occupancy Costs

Expenses related to occupying a physical space, including rent, utilities, and property taxes.

Flexible Budget

A flexible budget adjusts to changes in activity levels, providing a more useful comparison of actual to budgeted performance.