Figure 7-2 -Figure 7-2 Depicts a Demand Curve with a Price Elasticity

question 134

Multiple Choice

Figure 7-2
-Figure 7-2 depicts a demand curve with a price elasticity that is

• A) perfectly elastic, implying that as much as can be supplied will be purchased at the market price.
• B) relatively inelastic, implying that a percent increase in price results in a smaller percent reduction in sales.
• C) unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
• D) perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.

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Definitions:

Consideration Set

A group of brands or products that a consumer evaluates as choices for a potential purchase.

Rackspace U.S. Inc.

An American managed cloud computing company that offers a broad set of cloud services across multiple platforms.

Consideration Set

A group of brands or products a consumer evaluates as potential options to satisfy a need or purchase decision.

Product Class

Refers to the entire product category or industry.