When the Price Elasticity of Demand Is Greater Than One

question 202

Multiple Choice

When the price elasticity of demand is greater than one, it means that demand is

• A) inelastic and the percent change in quantity is greater than the percent change in price.
• B) inelastic and the percent change in quantity is less than the percent change in price.
• C) elastic and the percent change in quantity is greater than the percent change in price.
• D) elastic and the percent change in quantity is less than the percent change in price.

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Definitions:

Price Deals

Promotional offers that reduce the cost of a product or service for a limited time to encourage purchase or trial by consumers.

Loyal Customers

Consumers who repeatedly purchase products or services from the same brand instead of switching to competitors.

Networking Potential

The capability of an individual or organization to develop and maintain a network of business contacts, which can be leveraged for opportunities and growth.

Learning Potential

The capacity or ability of an individual or organization to gain knowledge or skills.