If the Absolute Value of the Price Elasticity of Demand

question 173

Multiple Choice

If the absolute value of the price elasticity of demand for a good is 1.5, the good has a(n) :

• A) elastic demand.
• B) inelastic demand.
• C) unit elastic demand.
• D) unit inelastic demand.

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Definitions:

Turnaround

The process of implementing significant changes in a company to address financial or operational issues and improve performance and profitability.

Multidomestic Strategy

A strategy that customizes products and advertising to best fit local needs.

Geocentric View

An approach to international business that sees similarities and differences everywhere and seeks to build strategies that leverage global efficiencies without being blind to local needs.

Transnational Strategy

A strategy that seeks efficiencies of global operations with attention to local markets.