The Own Price Elasticity of Demand for Apples Is −1

question 89

Multiple Choice

The own price elasticity of demand for apples is −1.5.If the price of apples falls by 6 percent,what will happen to the quantity of apples demanded?

• A) It will increase 4 percent.
• B) It will increase 9 percent.
• C) It will fall 4 percent.
• D) It will fall 6 percent.

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Definitions:

Effective Pricing

The strategy of setting a product's price based on the value perceived by the customer, market demand, and competition, aiming to maximize both profit and customer satisfaction.

Marketer

A person or company involved in the process of promoting, selling, and distributing products or services to potential customers.

Customer-Oriented

An approach by businesses that focuses on creating a positive experience for customers through tailored services and products that meet their needs.

Pricing Strategy

A method or model used by businesses to set the selling price for their products or services, taking into account factors like cost, competition, target market, and overall business objectives.