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:

Expectancy

The belief or anticipation about the likelihood that a specific outcome will occur, often influencing motivation and behavior.

Not Unreasonable Level

A phrase indicating that something is within a sensible or acceptable range or standard, often used to discuss expectations or outcomes.

Difficult Goals

Targets or objectives that are challenging to achieve due to their demanding nature or high standards.

Specific Goals

Clearly defined, measurable, and time-bound objectives that guide individual or organizational efforts and facilitate performance evaluation.