A 15% Decrease in the Price of Sugar Causes the Quantity

question 46

Multiple Choice

A 15% decrease in the price of sugar causes the quantity demanded to rise by 5%. The demand for sugar is

• A)perfectly elastic.
• B)relatively elastic.
• C)unit elastic.
• D)relatively inelastic.
• E)perfectly inelastic.

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Definitions:

One-price Policy

A pricing strategy where a retailer sets a fixed price for all customers, eliminating bargaining or negotiation.

Fixed-price Policy

A pricing strategy where the price of a product or service is set and not subject to change based on market fluctuations or negotiation.

Customary Pricing

Pricing strategy based on traditional costs or prices established over time within a specific industry or market for certain goods or services.

Below-market Pricing

A pricing strategy where products or services are offered at a price lower than the prevailing market rates to attract more customers or gain market share.