Which of the Following Is True Regarding Price Elasticity

question 42

Multiple Choice

Which of the following is True regarding price elasticity?

• A) The higher the elasticity, the lesser the volume growth resulting from a one-percent price reduction.
• B) Long-run and short-run price elasticity may differ, delaying the impact of a price change.
• C) If demand is elastic, sellers assume that lowering the price will decrease total revenue.
• D) Price elasticity does not depend on magnitude and direction of the contemplated price change.
• E) When demand is inelastic, sellers should lower prices in order to increase total revenue.

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Definitions:

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A class that inherits attributes and methods from a base class, also known as a subclass.