If Demand Is Elastic and the Price of a Product

question 247

Multiple Choice

If demand is elastic and the price of a product decreases by 10 percent, then

• A) the change in quantity demanded is less than 10 percent.
• B) the change in quantity demanded is equal to 10 percent.
• C) the change in quantity demanded is greater than 10 percent.
• D) the decrease in quantity demanded is greater than 0 percent.

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Definitions:

Revenue Management

Techniques and strategies used to optimize the amount of revenue generated, often through adjusting pricing, timing, and availability in response to demand.

Supply Chain Assets

The resources and capabilities, such as distribution facilities, logistics services, and inventory management systems, that support the flow of goods from suppliers to customers.

Capacity

The maximum amount that something can contain or produce, such as the production capacity of a factory or the storage capacity of a warehouse.

Inventory

The quantity of goods and materials on hand that a business holds for the purpose of resale, production, or utilization.