Which of the Following Statements About Price Lining Is True

question 96

Multiple Choice

Which of the following statements about price lining is true?

• A)This method assumes that demand is elastic at each price point used.
• B)Primarily government contractors use this method.
• C)Those who use this method prefer to have at least a dozen different price points.
• D)This method assumes demand is elastic between the price points.

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Definitions:

Expansionary Monetary Policy

A policy by central banks aimed at increasing the money supply to stimulate economic growth, typically involving lower interest rates and increased lending.

Stock Market

A public marketplace for buying and selling shares of publicly listed companies.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Government Spending

Expenditure by the government in any given period, typically on public services, defense, infrastructure, and social welfare programs.