The smaller the price elasticity of demand, the a. smaller the decrease in equilibrium price when the supply curve shifts rightward from s1 to s2. b. more strongly buyers respond to a change in price between any two prices p1 and p2. c. flatter the demand curve will be through a given point. d. steeper the demand curve will be through a given point.

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be: