Business People Speak About Price Elasticity of Demand Without Using

question 65

Multiple Choice

Business people speak about price elasticity of demand without using the actual term.Which one of the following statements reflects elastic demand for a good?

• A)"A price cut won't help me.It won't increase sales, and I'll just get less money for each unit."
• B)"I don't think a price cut will make any difference to my bottom line.What I may gain from selling more I would lose on the lower price."
• C)"My customers are real bargain hunters.Since I set my prices just a few cents below my competitors, customers have flocked to the store, and sales are booming."
• D)"With the recent economic recovery, people have more income to spend and sales are booming, even at the previous prices."
• E)none of the above

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result; the capability of producing a desired effect or outcome.

Self-Interest

A reference to an individual's actions that are primarily motivated by their own needs, wants, or benefits.

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A famous speech delivered by President Abraham Lincoln in 1863 during the American Civil War, emphasizing the principle of human equality and the fight for national unity.

Powerful Vision

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