Which of the Following Statements About Price Elasticity Is False

question 116

Multiple Choice

Which of the following statements about price elasticity is false?

• A)Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more.
• B)Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price.
• C)If marketers can determine price elasticity, then setting prices at optimum levels is much easier.
• D)When price is raised on a product that has an inelastic demand, then total revenue will decrease.
• E)A product like electricity has an inelastic demand.

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Definitions:

Mean

The average value in a set of numbers, calculated by dividing the sum of the numbers by the quantity of numbers.

Scale

A system of ordered marks at fixed intervals used as a reference standard in measurement.

Resistance To Change

The tendency of individuals or organizations to resist alterations in their current state or environment due to uncertainty or comfort with the status quo.

Overt And Covert

Overt refers to actions or behaviors that are open and observable, while covert implies actions or behaviors that are concealed or hidden.