If the Absolute Price Elasticity of Demand Is Equal to 1

question 223

Multiple Choice

If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be

• A) less than one.
• B) less than zero.
• C) greater than one.
• D) equal to zero.

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Definitions:

ROI

Return on Investment, a financial metric used to evaluate the efficiency and profitability of an investment, calculated by dividing the net profit by the initial cost.

Marketing Plan

A strategic document outlining an organization's advertising and marketing efforts over a certain period of time.

Sales Presentation

A pitch or demonstration given to potential customers to introduce a product or service and persuade them to make a purchase.

Reseller

An entity or person that buys products or services to sell them on, rather than to use or consume them personally.