The Price Elasticity of Demand Is Typically Expressed as a Positive

question 59

Multiple Choice

The price elasticity of demand is typically expressed as a positive number because:

• A)price and quantity move in the same direction.
• B)the demand curve has a positive slope.
• C)it's convenient to use absolute values.
• D)both the numerator and the denominator are negative, so the formula yields a positive number.

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Definitions:

Degree of Risk

The level of uncertainty and potential for losing something of value in an activity or investment, often measured in terms of volatility or likelihood of negative outcomes.

Brand Loyalty

The tendency of consumers to continually purchase the same brand's products or services over time due to positive experiences and perceived value.

Market Segmentation Strategies

The process of dividing a broad consumer or business market into sub-groups based on shared characteristics, to tailor marketing strategies effectively.