The Slope of the Demand Curve and the Price Elasticity

question 3

Multiple Choice

The slope of the demand curve and the price elasticity of demand are

• A)basically the same thing
• B)determined by supply
• C)are derived from production and distribution costs
• D)different because slope is based on absolute changes and elasticity is based on percentage changes
• E)implicit in the shape of the supply curve

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Definitions:

Market Segments

Subsets of a market composed of individuals or organizations with similar characteristics, needs, or behaviors that a business targets as part of its marketing efforts.

Positioning Strategy

A marketing approach that aims to establish a brand or product in the mind of the target audience in comparison to competitors.

Marketing Mix

A foundational model in marketing representing the basic elements that can be controlled to appeal to customers, traditionally defined as product, price, place, and promotion.

Market Segment

A group of consumers who respond similarly to a firm’s marketing efforts.