Inelastic Demand Implies

question 312

Multiple Choice

Inelastic demand implies

• A) that a one percent increase in price results in a smaller than one percent decrease in quantity demanded.
• B) that a one percent increase in price results in a larger than one percent decrease in quantity demanded.
• C) that a one percent cut in price results in a larger than one percent increase in quantity demanded.
• D) that a one percent decrease or increase in price induces no change in total revenue.

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Definitions:

E-Procurement System

An electronic system that automates the purchasing and procurement processes of organizations.

Small Dollar Value

Transactions or items that have a low monetary worth but may occur frequently within a business or transactional context.

Original Delivery Promise

The initial commitment made by a supplier regarding the delivery time of goods or services.

Speed Up Delivery

The process of increasing the speed at which goods are moved from the supplier to the customer in order to reduce lead times.