Business People Often Speak About Price Elasticity Without Actually Using

question 19

Multiple Choice

Business people often speak about price elasticity without actually using the term. Which statement describes a good with an elastic demand?

• A) "A price cut won't help me. It won't increase my sales, and I'll just get less money for each unit."
• B) "I don't think a price cut will help my bottom line any. Sure, I'll sell a bit more, but I'll more than lose because the price will be lower."
• C) "My customers are real shoppers. After I cut my prices just a few cents below those my competitors charge, customers have been flocking to my store and sales are booming."
• D) "The economic expansion has done wonders for my sales. With more people back at work, my sales are taking off!"