If the Price of a Product Increases by 10 Percent

question 63

Multiple Choice

If the price of a product increases by 10 percent and the quantity demanded decreases by 15 percent, then the

• A)product has an elastic demand.
• B)product has an inelastic demand.
• C)product has an elastic supply.
• D)product has a unit-elastic demand.
• E)producer should raise the price further to increase total revenue.

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Definitions:

Merchandise Suitability

The appropriateness of a product in meeting the specific needs or desires of a consumer group.

Decompression Zone

The decompression zone is an area just inside a store's entrance, where customers adjust to the store's environment and unconsciously make decisions about continuing their shopping journey.

Online Shoppers

Individuals who purchase products or services over the internet, utilizing electronic platforms for transactions.

Retail Themes

Specific motifs or narratives used in retail environments to create an appealing shopping experience or to attract a particular target market.