Assume the Demand Function for Skin Care Products Is Given

question 23

Multiple Choice

Assume the demand function for skin care products is given by Q = 1,000 - 20 P + 5I. If P=$25 and I=$1,000 currently, then:

• A) skin care products are a normal good.
• B) the elasticity of demand is equal to 11.
• C) skin care products are inferior.
• D) The price is too high

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Definitions:

Marketers

Professionals involved in creating and promoting products or services to meet consumer needs and generate profit for companies.

Heavy Users

Consumers who purchase and use products or services far more frequently than the average customer, often contributing disproportionately to sales and profits.

Total Demand

The entire quantity of a product or service that consumers in a market are willing and able to purchase at various prices during a specified period.

Rule

A prescribed guideline for conduct or action established by an authority.