One Problem in Relying on Price Elasticity and Demand Curves

question 20

Multiple Choice

One problem in relying on price elasticity and demand curves when setting prices is that

• A) the way a product or service is marketed can have a profound impact on price elasticity.
• B) the underlying ideas of the demand curve and elasticity are less relevant in the modern economy.
• C) only economists can properly analyze demand curves and set prices using this tool.
• D) competitors can construct the same demand curves, so there is no advantage in using them.
• E) marketing split from economics over the ideas of demand and elasticity.

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Definitions:

NPO

An abbreviation for "nil per os," a medical instruction meaning to withhold oral food and fluids from a patient.

Every Hour

A term indicating that an action should be performed or an event will occur once every hour.

Milliliter

A metric unit of volume equal to one thousandth of a liter, commonly used to measure liquid quantities.

Discontinue

Termination or cessation of an action or process.