Which of the Following Is a Key Determinant of the Price

question 59

Multiple Choice

Which of the following is a key determinant of the price elasticity of supply?

• A)the slope of the supply curve
• B)the availability of substitutes in production
• C)the available technology
• D)the time it takes to change output in response to a change in price

---

Definitions:

Standard Variable Overhead Rate

A predetermined rate used to allocate variable overhead costs to units of production, based on expected activity levels.

Practical Standards

Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.

Standard Quantity

This term refers to the amount of input (materials, labor, etc.) that should be used in the production of a unit of goods under normal conditions.

Standard Price

A pre-determined cost allocated to a single unit of product or service, used for budgeting and performance evaluation.