Which of the Following Statements About Price Elasticity Is False

question 116

Multiple Choice

Which of the following statements about price elasticity is false?

• A)Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more.
• B)Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price.
• C)If marketers can determine price elasticity, then setting prices at optimum levels is much easier.
• D)When price is raised on a product that has an inelastic demand, then total revenue will decrease.
• E)A product like electricity has an inelastic demand.

Analyze departmental performance based on various financial metrics such as net income, profit margin, and return on investment.

Apply cost allocation principles to hypothetical expansions and assess their impact on departmental income statements and company overhead.

Understand and apply the concept of responsibility accounting and its impact on cost control and managerial performance evaluation.

Compute and understand the cash conversion cycle and its importance in managing working capital.

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Definitions:

Ventral Respiratory Group

The ventral respiratory group is a cluster of neurons located in the medulla oblongata that plays a crucial role in regulating the rhythm of breathing.

Intercostal Muscles

Muscles located between the ribs that play an essential role in the mechanics of breathing.

Diaphragm

A large, dome-shaped muscle located below the lungs that plays a key role in breathing by contracting and relaxing to alter the size of the thoracic cavity.

Dorsal Respiratory Group

A cluster of neurons located in the medulla oblongata that controls the basic rhythm of respiration through the regulation of inspiratory depth and rate.