Costs That Are Unaffected by the Quantity of a Product

question 2

Multiple Choice

Costs that are unaffected by the quantity of a product that is produced or sold are

• A) variable costs.
• B) on-going costs.
• C) selling costs.
• D) fixed costs.
• E) product costs.

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Definitions:

Price Elasticity

A measure of the responsiveness of demand or supply to changes in price, often used to predict the effect of pricing decisions.

Unit Elastic

A situation in economic demand or supply where a change in price leads to an equal proportional change in the quantity demanded or supplied.

Price Elasticity

A metric that shows the responsiveness of the quantity of a product demanded when its price changes.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.