A New Apple IPad 5 Is Priced at $599

question 121

Multiple Choice

A new Apple iPad 5 is priced at $599.99 regardless of whether it is purchased in California or New York,or purchased at an Apple Store,online,or at Best Buy.This pricing policy is called:

• A)customary pricing
• B)one-price
• C)flexible-price
• D)standard markup

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Definitions:

Perfectly Inelastic

Describes a situation in which the quantity demanded or supplied does not change in response to a change in price.

Relatively Inelastic

Relatively inelastic refers to a situation where the demand for a good or service changes little when its price changes; the percentage change in demand is smaller than the percentage change in price.

Perfectly Elastic

This term describes a situation in market economics where the quantity demanded or supplied responds infinitely to changes in price.

Relatively Elastic

Describes a situation where the quantity demanded or supplied changes significantly in response to a change in price.