The Figure Given Below Shows the Demand Curves for Five

question 84

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-For a given product, income elasticity of demand relates the percentage change in:

• A)quantity demanded to the percentage change in income.
• B)quantity demanded to the absolute change in income.
• C)income to the percentage change in price.
• D)price to the absolute change in quantity demanded.
• E)income to the percentage change in quantity available for sale.

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Definitions:

Demand-oriented

Refers to pricing strategies that are based on the consumer's demand for a product or service.

Prestige Pricing

A pricing strategy where goods are priced higher than their objective market value to give them an appearance of luxury and quality.

Price Lining

is a pricing strategy where products are sold at a limited number of price points, each representing a distinct level of quality or features.

Odd-even Pricing

A pricing strategy involving setting prices so they end in an odd or even number to influence perception of value.