We Would Expect the Own Price Elasticity of Demand for Food

question 118

Multiple Choice

We would expect the own price elasticity of demand for food to be:

• A)less elastic than the demand for cereal.
• B)more elastic than the demand for cereal.
• C)have the same elasticity as soap.
• D)perfectly inelastic.

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Definitions:

Demand Equals Supply

An economic condition where the quantity of a product or service demanded by consumers is equal to the quantity supplied by producers.

Partnering/Consultative Selling

A sales approach that focuses on building a long-term relationship with the customer, where the seller acts as an advisor or partner rather than merely a vendor.

Alliance Selling

A sales strategy where partnering organizations join forces to sell complementary products or services to enhance value to the customer.

Benefit Selling

A method of selling whereby a salesperson relates a product’s benefits to the customer’s needs using the product’s features and advantages as support.