The Figure Given Below Shows the Demand Curves for Five

question 74

Multiple Choice

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

-The value of price elasticity of demand is more likely to be above 1 if:

• A)consumers have a long time to adjust to a price change.
• B)the product is a necessity.
• C)demand is inelastic.
• D)there are few close substitutes for the product.
• E)total revenue declines in response to a price reduction.

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Definitions:

Commission Basis

refers to a method of payment based on a percentage of the sales one makes, as opposed to a fixed salary.

Purchasing Agent

An individual or entity responsible for acquiring goods or services for a business or organization, typically seeking the best terms and price.

Receptionist

A receptionist is a person employed in an office or an establishment to assist visitors by greeting, directing, and providing information.

Express Instructions

Clear, explicit directions given to ensure the performance of a task or adherence to a process without ambiguity.