Demand Is Said to Be Price Elastic at a Point

question 59

Multiple Choice

Demand is said to be price elastic at a point on a demand curve if a

• A)1 percent rise in price reduces the quantity demanded by more than 1 percent.
• B)1 percent rise in price reduces the quantity demanded by less than 1 percent.
• C)1 percent rise in price reduces the quantity demanded by more than 10 percent.
• D)10 percent rise in price reduces the quantity demanded by less than 10 percent.

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Definitions:

Systems

Complex networks of interrelated components that work together to achieve some objective.

Kaizen Approach

A philosophy or practice focusing on continuous improvement in all aspects of life, particularly in business.

Operational Decisions

Decisions made in the day-to-day functioning of a company that are routine and aim to improve effectiveness and efficiency.

Radical Shifts

Significant changes that drastically alter the existing order, perceptions, or conditions in a given context, often leading to a new paradigm.