An Elastic Response in the Quantity of a Good Demanded

question 209

Multiple Choice

An elastic response in the quantity of a good demanded would be caused by

• A) the availability of many substitutes.
• B) a lack of substitutes.
• C) a lack of sensitivity to the good's price.
• D) the good representing a small portion of a person's budget.

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Definitions:

Machine-Hours

A measure of production time, referring to the number of hours machines are run to produce goods.

Oil Well Service Company

An oil well service company provides a range of services to the oil and gas industry, including drilling, maintenance, and completion services for oil wells.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels during a period.

Planning Budget

A budget that outlines the expected revenues, expenses, and resource allocations over a specific period, used for strategic financial planning.