A Firm Can Sell 10 Units If the Price Is

question 301

Multiple Choice

A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125.Using the midpoint method,what is the price elasticity of demand?

• A) 0.75
• B) 1.00
• C) 1.25
• D) 0.50
• E) 0.0

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Definitions:

Sales Tracking

A type of research that follows changes in sales during and after promotional programs to see how the marketing efforts affected the company’s sales.

Place

As one of the “four Ps,” includes the activities the firm undertakes to make its product available to potential customers. Also known as distribution.

Distribution Function

Part of the marketing mix that involves the process of making a product or service available for consumption or use by a consumer or business user.

Causal Research

A type of marketing research used to understand the cause-and-effect relationships among variables.