If the Quantity Effect Outweighs the Price Effect of a Price

question 7

Multiple Choice

If the quantity effect outweighs the price effect of a price increase,then:

• A)the good is price elastic.
• B)the good is price inelastic.
• C)the good is price unit elastic.
• D)Any of these could be true.

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Definitions:

Boutique Engineering

Specialized engineering services offered by smaller firms focusing on a niche market or particular area of expertise.

Sustainable Manufacturing

The creation of manufactured products through processes that minimize negative environmental impacts, conserve energy and natural resources.

Flexible Manufacturing

A production approach allowing for the quick adjustment of operations and products to respond to market changes or customer demands efficiently.

Lean Production

An organized approach to reducing waste in a manufacturing system while maintaining production levels.