Price Elasticity Can Be Estimated by Sampling a Group of Consumers

question 17

Multiple Choice

Price elasticity can be estimated by sampling a group of consumers from the target market and polling them about various price/quantity relationships. Which of the following observations concerning this approach is true?

• A) This approach is limited to the consideration of price changes.
• B) This approach is inexpensive.
• C) There is some question as to the validity of subjects' responses.
• D) The crude estimate of price elasticity is not a useful input for pricing decisions.

---

Definitions:

Amblyopia

A vision development disorder where an eye fails to achieve normal visual acuity, often referred to as "lazy eye."

Cataracts

A medical condition characterized by the clouding of the eye's natural lens, leading to decreased vision.

Tonometer

An instrument for determining pressure or tension, especially determining ocular tension.

Retinoscope

An instrument used by eye doctors to shine a light into the patient's eye to observe the reflection from the retina, helping to determine the patient's prescription for glasses or contact lenses.