Suppose That Along a Linear Demand Curve,the Elasticity of Demand

question 4

Multiple Choice

Suppose that along a linear demand curve,the elasticity of demand is equal to 1 when the price is $4 and the quantity is 100 units.Then the

• A) marginal revenue is negative when output exceeds 100 units.
• B) elasticity of demand is less than 1 when output exceeds 100 units.
• C) marginal revenue is 0 when output equals 100 units.
• D) Only answers A and B are correct.
• E) Answers A, B, and C are correct.

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Definitions:

Approach Phase

The initial stage in the sales process where the salesperson first contacts the potential customer, aiming to establish rapport and understand customer needs.

Building Rapport

The process of establishing a connection or trust with someone, essential in sales to facilitate open communication and understanding.

Customer Benefit Plan

A strategic offering designed to provide additional value to customers, often through services or rewards, to enhance customer satisfaction and loyalty.

Sales Call Objective

The purpose or goal that a salesperson aims to achieve during a call to a potential or existing customer, such as making a sale, gathering information, or building a relationship.