Which of the Following Is True Regarding Price Elasticity

question 107

Multiple Choice

Which of the following is true regarding price elasticity?

• A) The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction.
• B) Within the price indifference band, price changes have little or no effect on demand.
• C) If demand is elastic, sellers will consider increasing the price.
• D) Price elasticity does not depend on magnitude and direction of the contemplated price change.
• E) When demand is inelastic, sellers should lower prices in order to increase total revenue.

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Definitions:

Positive Psychology

A field of psychology that focuses on the study of human strengths and virtues that enable individuals and communities to thrive.

Human Strengths

The positive attributes and abilities of a person, including moral virtues, talents, and skills, that contribute to resilient and flourishing life.

Rogers'

Refers to the theories and practices developed by Carl Rogers, a prominent figure in humanistic psychology, known for his client-centered therapy approach.

Maslow's

Refers to Maslow's hierarchy of needs, a psychological theory that prioritizes human needs from the most basic physiological necessities to the need for self-actualization.