If Consumer Purchases of a Good Are Highly Sensitive to the Price

question 386

Multiple Choice

If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively

• A) inelastic.
• B) elastic.
• C) robust.
• D) inverse.

---

Definitions:

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces, such as raw materials and labor expenses.

Fixed Costs

Expenses that remain constant for a specific period regardless of changes in the volume of production or services provided.

Budget Reports

Financial documents that compare actual financial results to the projected budget over a specific period, often used for tracking financial performance and planning.