If Demand for a Good Is Perfectly Inelastic, Then

question 307

Multiple Choice

If demand for a good is perfectly inelastic, then

• A) a price increase would cause a fall in quantity demanded.
• B) a price increase would cause no change in quantity demanded.
• C) a price increase would cause an increase in quantity demanded.
• D) a price increase would cause a fall in total revenue.

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Definitions:

Labor-Related

Pertaining to or concerning the workforce, including aspects such as hiring, management, and costs associated with employees.

Activity Cost Pool

An activity cost pool is a collection of costs related to a specific activity or process, used in activity-based costing to allocate costs to products or services.

General Factory

A facility where a variety of goods are manufactured or assembled, usually implying a broad range of production activities.

Activity Cost Pool

A grouping of all the costs related to a particular activity in the process of costing in an activity-based costing system.