If the Price Elasticity of Demand for Razors Is 0

question 79

Multiple Choice

If the price elasticity of demand for razors is 0.32,the demand for razors is

• A) elastic.
• B) unit elastic.
• C) inelastic.
• D) perfectly inelastic.
• E) perfectly elastic.

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Definitions:

Direct Materials

Components that are directly associated with the creation of a product and form a crucial part of the completed item.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.

Standard Quantity

The predetermined or budgeted amount of materials expected to be used in the production of a product, based on efficiency and productivity standards.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce a good and the standard hours expected, multiplied by the variable overhead rate.