Which of the Following Situations Could Explain Why Product X

question 160

Multiple Choice

Which of the following situations could explain why product X has a relatively high price elasticity of demand in the short run?

• A)the price of product X is too low
• B)the price of product X is too high
• C)the prices of substitute products are constant
• D)there are many substitutes for product X and consumers have an ability to switch quickly to those substitutes
• E)there are few substitutes for product X in the short run

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Definitions:

On-line Banking

The provision of banking services over the internet, allowing users to conduct financial transactions remotely.

Transaction Speed

The rate at which a financial transaction is processed from initiation to completion.

Convenience

The quality or state of being convenient, especially in terms of ease of access or use, often used in marketing to describe consumer products or services.

Cash Handling Procedures

Guidelines and methods a company follows to manage and safeguard the cash it receives and disburses.