All of the Following Statements Are True EXCEPT

question 257

Multiple Choice

All of the following statements are true EXCEPT

• A) the demand for food is less elastic than the demand for a Hawaiian vacation.
• B) the demand for clothing is less elastic than the demand for blue jeans.
• C) the demand for gasoline is more elastic the longer the time elapsed.
• D) the smaller the proportion of income spent on a good, the more inelastic demand will be.
• E) the demand for Nike running shoes is less elastic than the demand for shoes.

---

Definitions:

Skimming Pricing Strategy

A pricing strategy where a product is initially sold at a high price, which is gradually lowered to attract more price-sensitive customers.

Home Electronics

Electronic devices intended for everyday use in private homes, such as televisions, refrigerators, and microwaves.

Penetration Pricing

A strategy of setting a low initial price for a product or service to attract customers quickly and gain market share.

Developmental Costs

Expenses associated with the research and development of a company's goods or services before they can be sold commercially.