Suppose a 1 Percent in the Price of a Good

question 173

Multiple Choice

Suppose a 1 percent in the price of a good results in the quantity demanded changing by 0.2 percent. Then you know

• A)the price elasticity of demand is 0.2.
• B)nothing about slope or price elasticity of demand based on this information.
• C)the price elasticity of demand is 5.
• D)the slope of the demand curve is 5.
• E)the slope of the demand curve is 0.2.

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Definitions:

Marketing of Services

Strategies and approaches used to promote and sell non-tangible products, such as banking, cleaning, or educational services.

Sustainable Competitive Advantage

A unique advantage that allows a company to outperform its competitors over a long period.

Heterogeneous

Consisting of elements or parts that are different from each other; diverse in character or content.

Procedural Fairness

Refers to the customer’s perception of the fairness of the process used to resolve complaints about service.