If a Company Institutes a 3% Price Decrease and the Result

question 66

Multiple Choice

If a company institutes a 3% price decrease and the result is a 6% increase in the quantity demanded,what is the price elasticity of demand for the product?

• A)-2
• B)+2
• C)-.5
• D)+.5

Grasp the concept of service productivity strategies, including postponement and service blueprinting.

Understand the significance of process maps and their enhancement with time and customer interaction components.

Distinguish between process focus, repetitive focus, mass customization, and product focus strategies and their effects on volume, variety, and equipment utilization.

Appreciate the importance of flexibility in equipment and technology selection for process strategies.

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Definitions:

Opportunity Cost

The cost of choosing one alternative over another, typically representing the benefits you could have received by taking a different action.

Alternative Use

The potential other applications or purposes for which a resource, asset, or investment could be utilized instead of its current use.

Game

An interactive, often competitive activity involving skill, chance, or endurance on the part of two or more persons who play by a set of rules, usually for entertainment.

Behavioral Science

The study of human and animal behavior through observation and empirical analysis, encompassing fields such as psychology, sociology, and anthropology.