How Do Companies Use Price Elasticity to Improve Their Business

question 47

Multiple Choice

How do companies use price elasticity to improve their business?

• A)By separating customers into groups, companies can attract different groups with different prices.
• B)Companies can force everyone to pay the same price regardless of demand.
• C)Companies can ignore price elasticity, it cannot improve business.
• D)Customers are all the same and price elasticity is the same for all of them.
• E)None of the above.

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Definitions:

Variability

The amount of dispersion of scores about some central value.

Pearson Product-moment

A correlation coefficient that measures the linear correlation between two variables, indicating the strength and direction of their relationship.

Correlation Coefficient

An index of how strongly two variables are related to each other.

Alternate Forms Reliability

A measure of reliability obtained by administering different versions of an assessment tool to the same group of individuals.