The More Sensitive Customers Are to Price

question 51

Multiple Choice

The more sensitive customers are to price,

• A) the smaller (in absolute value) is the price elasticity of demand.
• B) the more inelastic is the demand for a product.
• C) the larger (in absolute value) is the price elasticity of demand.
• D) the more likely price elasticity of demand will be greater than +1.

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Definitions:

Sufficient Funds

Availability of enough money or resources to meet financial obligations or complete transactions.

Certificate Of Deposit

A document whereby a bank promises to pay a payee a certain amount of money at a future time.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Accord

An agreement in the context of contract law where one party agrees to accept a substitute form of satisfaction from the other party.