Answer the Following Questions Using the Information Below

question 114

Multiple Choice

Answer the following questions using the information below:
Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.

-The demand for this product is:

• A)elastic
• B)slightly inelastic
• C)greatly inelastic
• D)indeterminable

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Definitions:

Occupational Safety and Health Act

A United States law established in 1970 to ensure workplace safety and health standards.

Workplace Safety

Practices and policies implemented to ensure the physical and emotional well-being of employees in their working environment.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Fiduciary Responsibility

The obligation of one party to act in the best interest of another within a relationship of trust, such as that between a trustee and the beneficiaries.