Firms Are Indifferent to Changing Prices When the Price Elasticity

question 153

Multiple Choice

Firms are indifferent to changing prices when the price elasticity of demand is

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

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Definitions:

Units

A measure of quantity used to express the amount of a product, service, or resource used or produced in a transaction.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of material.

Units

Basic quantities or measures used to express the amount, level, or extent of something.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributable to variations in the volume of production.