When Can a Service Be Said to Be Price-Elastic

question 60

Multiple Choice

When can a service be said to be price-elastic?

• A)Where a large increase in price has the effect of a large increase in sales.
• B)Where a large decrease in price has the effect of a small increase in sales.
• C)Where a small decrease in price has the effect of a large increase in sales.
• D)Where a small increase in price has the effect of a small increase in sales.
• E)Where a small increase in price has the effect of a small decrease in sales.

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Definitions:

New Product

An item or service that has been recently developed or introduced to the market, offering new or improved features.

Minimum Wage Control

Regulatory measures that set the lowest hourly rate of pay that employers can legally offer their employees.

Fringe Benefits

Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, retirement plans, and paid time off.

Workplace Amenities

Features and benefits provided in the workplace beyond salary, aimed at improving employees' working conditions and satisfaction.