The Quantity Consumed of a Good Is Relatively Unresponsive to Changes

question 15

Multiple Choice

The quantity consumed of a good is relatively unresponsive to changes in price whenever demand is:

• A) elastic.
• B) unitary.
• C) falling.
• D) inelastic.

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Definitions:

Direct Materials

Raw materials that are directly attributable to the production process and are part of the finished product.

Factory Supplies

Consumable items used in a manufacturing process, excluding raw materials and labor.

Sales Commissions

A portion of the sale amount given to salespersons as a reward for selling products or services.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.