If the Elasticity of Demand Is Much Greater Than the Elasticity

question 82

Multiple Choice

If the elasticity of demand is much greater than the elasticity of supply,a subsidy awarded to demanders will

• A)benefit the demanders more than the suppliers
• B)benefit the suppliers more than the demanders
• C)the benefit of the subsidy will be equally shared between the demanders and the suppliers
• D)allow the demanders to be the only ones who will benefit
• E)Without more information as to the amount of the subsidy,who will benefit more can not be determined

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Definitions:

Marketing Action

Any initiative or effort undertaken by a company to promote its products or brand to its target market.

Market-product Grid

A tool that helps companies analyze their market offerings by examining different markets and the products they offer in each.

Market Segment

A group of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.

Urban University

An institution of higher education located in a city environment, often offering distinct opportunities and challenges compared to rural institutions.