Which of the Following Statements Regarding Price Elasticity Is False

question 29

Multiple Choice

Which of the following statements regarding price elasticity is false?

• A) The concept of price elasticity is an extension of the economic pricing model.
• B) Demand is elastic if a price change has a large negative impact on sales volume.
• C) Demand is elastic if price changes have no impact on sales volume.
• D) Measuring price elasticity is an important objective of market research.
• E) Demand is relatively inelastic if price changes have little impact on sales quantity.

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Definitions:

Negligence

Negligence is the failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for any damages caused.

Duress

A condition in which a person performs an act as a result of violence, threat, or other pressure against the person, rendering any agreement made under such conditions potentially voidable.

Criminal Lawsuit

A legal proceeding brought against an individual or entity accused of committing a crime, with the intention of achieving a formal judgment of guilt.

Undue Influence

A situation in which an individual is able to exert a level of influence over another person, typically in a way that undermines the individual's free will or judgement, often a concern in contract law and wills.