Which of the Following Is True of Price Elasticity

question 26

Multiple Choice

Which of the following is true of price elasticity?

• A)When the price elasticity equals 0,we have unitary elasticity where the percentage change in volume is equal to the percentage change in price.
• B)Price elasticity is almost always a negative number due to the inverse relationship between price and volume.
• C)Prestige products that can see an increase in demand when their prices are increased have negative price elasticity.
• D)Price elasticities between -1 and -10 are inelastic because the percentage change in volume is greater than the percentage change in price.
• E)Price elasticities between zero and -1 are considered elastic,as the percentage change in volume is less than the percentage change in price.

---

Definitions:

Cuckoo Bird

A bird known for laying its eggs in the nests of other bird species, leading to its young being raised by the host birds.

Learned

Acquired or developed as a result of experience, study, or being taught.

Territory

Area from which an animal or group of animals actively excludes others.

Exclusive Area

A zone or space that is reserved for a particular purpose or access is restricted to a certain group.