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NEW QUESTION: 1
Utility companies can generally price their product, a good that establishes a comfortable life-style (i.e.,
electricity, gas for home heating) based on the fact that the demand:
A. Is relatively inelastic.
B. Is relatively elastic.
C. Is perfectly inelastic.
D. Is perfectly elastic.
Answer: A
Explanation:
Choice "c" is correct. Goods that are important for a comfortable life-style would be relatively price
insensitive (i.e., inelastic). For example, demand for electricity would only decrease if there were an
enormous increase in price (people might then use other forms of energy - such as solar). Only goods that
are absolute necessities (a theoretical example is water) have perfectly inelastic demand curves. That is,
no matter what price is charged, people will still buy the product because they need it to stay alive.
Choices "a", "b", and "d" are incorrect, per Explanation: for choice "c" above.

NEW QUESTION: 2
What tool and technique includes all costs incurred over the life of a product by investment in preventing nonconformance to requirements?
A. Cost of quality
B. Measure of design
C. Systematic analysis
D. Statistical control
Answer: A