Which of the Following Statements About Price Elasticity of Demand

question 199

Multiple Choice

Which of the following statements about price elasticity of demand is true?

• A)The more substitutes a product has, the less likely it is to be price elastic.
• B)Price elasticity with unitary demand is less than 1.
• C)With inelastic demand, a reduction in price increases total revenue.
• D)With inelastic demand, price elasticity is less than 1.

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Definitions:

Hole Basis Fit System

A system for fitting where the size of the hole is kept constant and the size of the shaft is varied to obtain different types of fits.

Basic Size

The theoretical or nominal size from which limits of size are determined in machining or manufacturing a piece, serving as a reference for tolerances.

Loose Running Fit

A type of mechanical fit where components can move or rotate freely within each other, used for applications requiring minimal resistance.

Basic Diameter

The theoretical exact diameter of a cylindrical or conical feature as defined in a technical drawing, without any tolerances.