Which of the following would tend to make demand INELASTIC?
a. the amount of time analyzed is quite long
b. there are lots of substitutes available
c. the product is highly durable
d. the proportion of the budget spent on the item is very small
e. no one really wants the product at all
Question 2
Managers of profit centers earn more when their divisions
a. increase their sales and decrease their costs
b. decrease their sales and increase their costs
c. increase the costs of the components for which they are responsible
d. None
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