Which of These Statements About Price Elasticity of Demand Is

question 81

Multiple Choice

Which of these statements about price elasticity of demand is most accurate?

• A) The more substitutes a product has, the more likely it is to be price elastic.
• B) All products show some price inelasticity.
• C) Nondiscretionary (necessary) purchases are price elastic.
• D) With inelastic demand, reducing price has a very large impact on revenues.
• E) With inelastic demand, manufacturers change prices frequently to capitalize on consumer behavior.

---

Definitions:

Consolidated Statement

A financial statement that aggregates the financial performance and position of a parent company and its subsidiaries.

Other Comprehensive Income

Revenues, expenses, gains, and losses that are not included in net income but affect equity.

Non-controlling Interest

A minority stake in a subsidiary not owned by the parent company, representing shareholders' equity in subsidiaries not wholly owned by the parent.

Corporations Act

Legislation that governs the functioning of corporations, including their formation, operation, governance, and dissolution.