Which of the Following Statements About Price Elasticity Is False

question 116

Multiple Choice

Which of the following statements about price elasticity is false?

• A)Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more.
• B)Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price.
• C)If marketers can determine price elasticity, then setting prices at optimum levels is much easier.
• D)When price is raised on a product that has an inelastic demand, then total revenue will decrease.
• E)A product like electricity has an inelastic demand.

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