Which of the Following Statements Regarding Price Elasticity Is False

question 29

Multiple Choice

Which of the following statements regarding price elasticity is false?

• A) The concept of price elasticity is an extension of the economic pricing model.
• B) Demand is elastic if a price change has a large negative impact on sales volume.
• C) Demand is elastic if price changes have no impact on sales volume.
• D) Measuring price elasticity is an important objective of market research.
• E) Demand is relatively inelastic if price changes have little impact on sales quantity.

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Definitions:

Disclosure of Balances

Involves the requirement in financial reporting to provide detailed information about the balances of different accounts on the balance sheet or within the financial statements.

Useful Life Estimates

Projections or assessments of the duration during which an asset is expected to be economically viable and productive for its intended purpose.

Revaluation Surplus

The increase in an asset's carrying amount as a result of a revaluation, recognized in equity.

Financial Period

A specified duration of time used for financial reporting and accounting purposes, typically one year or one quarter.