If the Percentage Change in the Price of a Good

question 96

Multiple Choice

If the percentage change in the price of a good is less than the percentage change in the quantity demanded of that good then the demand for that good,with respect to price,is:

• A)elastic.
• B)inelastic.
• C)unitary elastic.
• D)perfectly inelastic.

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Definitions:

Fixed Cost Per Period

Costs that do not vary with the level of production or sales within a certain range and time frame, such as rent or salaries.

Mixed Cost

A cost that contains both variable and fixed cost elements and changes in total with the level of activity, but not proportionately.

Maintenance Cost

Expenses incurred to keep property, equipment, or assets in effective operating condition.

Machine Hour

A measure of production time, representing the time a machine is operated to perform work.