Demand Is Unit Elastic Whenever

question 115

Multiple Choice

Demand is unit elastic whenever

• A)price elasticity has an absolute value of 1
• B)price elasticity has an absolute value greater than 1
• C)price elasticity has an absolute value less than 1
• D)price elasticity is negative
• E)consumers always respond to a one-dollar change in price by decreasing their quantity demanded by one unit

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Definitions:

Machining Department

A specific division within a manufacturing facility where machining processes such as cutting, drilling, or milling occur.

Manufacturing Overhead

All production costs other than direct materials and direct labor, including expenses such as rent, utilities, and equipment depreciation.

Overhead Applied

The amount of overhead costs allocated to products or services based on a predetermined overhead rate.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods, a key factor in calculating labor costs.