1. A price elasticity of 1.2 indicates that:

a. an item costs 20% more after an increase in demand than before

b. a 10% increase in demand leads to a 12% increase of revenue

c. a 1% increase in quantity demanded, leads to a 1.2% decrease in price

d. a 1% increase in price, leads to 1.2% decrease in quantity demanded

2. If your project was supposed to have spent $100,000 to date, has actually spent $120,000, but has done $80,000 worth of work (your earned value), what is your cost variance according to the earned value management perspective?

a. on target performance

b. $20,000 overrun

c. $40,000 overrun

d. $60,000 overrun