If the Price of Snorkeling Tours Decreases by 15% and This

question 105

Multiple Choice

If the price of snorkeling tours decreases by 15% and this leads to an increase in the quantity demanded of 30%, the price elasticity of demand is _____ and the demand for snorkeling tours is _____.

• A) 0.5; elastic
• B) 0.5; inelastic
• C) 2; elastic
• D) 2; inelastic

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Definitions:

Product Life Cycle

The stages a product goes through from introduction to the market, through growth and maturity, and eventually into decline.

Decline

A decrease in the value, quantity, quality, or strength of something, often used in economic contexts to describe the downturn in markets, sales, or production.

Phase Out

The planned discontinuation or gradual removal of a product, service, or technology from the market or production line.

Mobile Marketing

Mobile marketing is a multi-channel, digital marketing strategy aimed at reaching a target audience on their smartphones, tablets, and other mobile devices, via websites, email, SMS, social media, and apps.