Which of the Following Statements About the Price Elasticity of Demand

question 110

Multiple Choice

Which of the following statements about the price elasticity of demand is correct?

• A)The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
• B)Price elasticity of demand reflects the many economic,psychological,and social forces that shape consumer tastes.
• C)Other things equal,if good x has close substitutes and good y does not have close substitutes,then the demand for good x will be more elastic than the demand for good y.
• D)All of the above are correct.

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Definitions:

Market-oriented

A business approach focusing on identifying and meeting the desires and needs of customers through the product mix.

Buying Options

Choices available to consumers regarding the types of products or services they can purchase, including different models, features, and payment plans.

Customer Data

Information about customers that companies collect, analyze, and store to understand their needs, behaviors, and preferences for strategic purposes.

Long-term Relationships

Long-term relationships refer to lasting partnerships or interactions between businesses and their stakeholders, aimed at mutual benefit and sustained over time.