Which of the Following Is NOT Characteristic of a Good

question 251

Multiple Choice

Which of the following is NOT characteristic of a good with elastic demand?

• A) The absolute price elasticity of demand is less than 1.
• B) Total revenue decreases if price is increased.
• C) Buyers are relatively sensitive to price changes.
• D) The percentage change in quantity demanded is greater than the percentage change in price.

---

Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of equivalent full units.

Materials

The raw inputs used in the production of goods, often categorized into direct materials that can be directly traced to the final product and indirect materials used in the production process but not directly identifiable with specific units or batches of production.

Equivalent Units

A concept in cost accounting used to allocate costs to units of production in processes where the units are not yet complete, converting them into the amount of finished goods units.

Assembly Department

A section within a manufacturing process where components are joined together to form a finished product.