Which of the Following Components Measures the Change in Costs

question 78

Multiple Choice

Which of the following components measures the change in costs attributable to a change in the quantity of inputs used?

• A)Growth.
• B)Strategy.
• C)Organic.
• D)Productivity.
• E)Price recovery.

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Definitions:

Quantity Supplied

The quantity of a product or service that sellers are ready and capable of offering for sale at a certain price during a designated period.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels within a given time frame.

Inelastic Demand

Refers to a situation where the quantity demanded of a good or service changes little with a change in price.

Elastic Demand

A situation in which the demand for a good or service is highly responsive to changes in its price.