Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A) Demand is more elastic in the short run than in the long run.
• B) The price elasticity of demand for new products in new markets is likely to be inelastic.
• C) The longer the time consumers have to adjust to changes in the price of a good, the more inelastic the demand will be.
• D) The availability of substitutes for a good does not affect its price elasticity of demand.

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Definitions:

Federal Communications Commission

A United States government agency responsible for regulating interstate and international communications via radio, television, wire, satellite, and cable.

Geographical Pricing

A pricing strategy where the price of a product or service varies depending on the geographical location or market.

FOB Freight-Allowed

A shipping term indicating that the seller pays for the transportation of goods to a specific location, but the buyer assumes the risk of loss once shipped.

Basing-Point Pricing

A pricing strategy where the price of goods includes transportation costs from a specific location, regardless of the actual shipment origin.