When Demand for a Product Is Very Elastic and Prices

question 33

Multiple Choice

When demand for a product is very elastic and prices are increased, demand will ________.

• A) remain the same, and operating profits will increase
• B) remain the same, and operating profits may either increase or decrease
• C) decrease, and operating profits will decrease
• D) decrease, and operating profits may either increase or decrease

Understand the impact of location decisions on manufacturing with respect to raw materials, market proximity, and logistics.

Recognize the role of technology in manufacturing, including robotics and computer-aided design/manufacturing systems.

Understand the importance of standardization in manufacturing and its impact on efficiency and product quality.

Acknowledge environmental considerations in manufacturing, including the necessity for environmental impact assessments.

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Definitions:

Binocular Cues

Visual information taken in by two eyes that enable us a sense of depth perception, such as binocular disparity.

Monocular Cues

Visual information that allows for perception of depth and distance using one eye.

Endorphins

Natural, pain-killing substances produced by the body that also contribute to feelings of pleasure and well-being.

Natural Opiates

Are substances derived from the opium poppy plant that have pain-relieving properties, such as morphine and codeine.