If a Firm Wanted to Know Whether the Demand for Its

question 58

Multiple Choice

If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could

• A)survey competitors and ask them what they think demand elasticity is for the product.
• B)talk to its customers.
• C)change price a little bit and observe what happens to total revenue.
• D)not do anything as there is no way to find an elasticity value.

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Definitions:

Sigma Control Limits

Statistical boundaries set in process control that indicate whether a process is in a state of control or needs adjustment, based on the standard deviation (σ) of the process data.

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of data points around the mean, indicating how spread out the data points are.

Specification Limits

Defined upper and lower bounds within which a product or process measurement should fall to meet quality standards.