When the NES Group Lowered the Price of Its Professional-Grade

question 49

Multiple Choice

When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600,demand doubled from four units sold per month to eight units per month.However,total revenue dropped.This is an example of:

• A) substitute goods
• B) unitary elasticity
• C) elastic demand
• D) consumer shortage
• E) inelastic demand

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Definitions:

NFC

Near Field Communication, a short-range wireless technology that enables the exchange of data between devices over about a 4 cm distance, commonly used for contactless payments.

Short-range

Describes communication or transmission technologies designed to work over short distances.

Wireless Network

A method of communication that uses radio waves to connect devices to the internet and to each other without the use of wires.

War Driving

War driving is the act of searching for Wi-Fi wireless networks by a person in a moving vehicle, using a portable computer, smartphone, or personal digital assistant (PDA).