ACCOUNTING
Multiple Choice
LeBlanc Lighting manufactures table lamps and is considering raising the price by $10 a unit for the coming year. With a $10 price increase, demand is expected to fall by 2,000 units.
Currently Projected
Demand 20,000 units 18,000 units
Selling price $150 $160
Variable costs per unit $100 $100
The demand for this product
a. is greatly inelastic.
b. is slightly inelastic.
c. is elastic.
d. is impossible to determine.
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