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.

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Definitions:

Maritime Provinces

A region in eastern Canada consisting of three provinces: New Brunswick, Nova Scotia, and Prince Edward Island, known for their coastlines and maritime culture.

Serial-position Effect

A psychological phenomenon where an individual is more likely to remember the first and last items in a series better than the middle items.

Long-term Memory

A type of memory responsible for the storage of information over extended periods, anything from hours to a lifetime.

Sensory

Relating to sensation or the physical senses; transmitted or perceived by the senses.