If the Price of a Good Increases by 10% and the Quantity

question 88

Multiple Choice

If the price of a good increases by 10% and the quantity demanded decreases by 5%, then at that price, the good is

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

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Definitions:

Hourly Labour

Refers to workers who are paid for each hour of work they perform, as opposed to salaried employees who receive a fixed amount regardless of hours worked.

Kitchen Benchtops

The flat surfaces in a kitchen on which food can be prepared, often made from materials such as stone, laminate, or timber.

Mixed Cost

Expenses that have both fixed and variable components, changing in total with the level of activity but not proportionately.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including indirect labor, materials, and factory-related expenses.