In Which of the Cases Given Below Will the Elasticity

question 17

Multiple Choice

In which of the cases given below will the elasticity of demand for workers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is

• A) 5, and labor's share of total costs is 20 percent.
• B) 5, and labor's share of total costs is 75 percent.
• C) .1, and labor's share of total costs is 20 percent.
• D) .1, and labor's share of total costs is 75 percent.

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Definitions:

Product Life Cycle

The stages through which a product goes from its introduction to the market through its growth, maturity, and eventual decline.

Promotion Mix

The combination of marketing communication methods used by a firm to promote its products or services, such as advertising, sales promotion, public relations, and direct marketing.

Personal Selling

A marketing strategy where salespersons directly communicate with potential buyers to sell products or services.

Aircraft

A vehicle designed for air travel, capable of lifting, flying, and landing through the atmosphere.