If the Price Elasticity of Demand for a Good Is

question 145

Multiple Choice

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

• A)0.33 percent increase in the quantity demanded.
• B)3 percent increase in the quantity demanded.
• C)30 percent increase in the quantity demanded.
• D)48 percent increase in the quantity demanded.

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Definitions:

Marketing Strategy

A comprehensive plan devised to reach and persuade potential customers to purchase a product or service.

Product Bundling

A marketing strategy that involves offering several products for sale as one combined product.

Product Modification Strategies

Product modification strategies are approaches businesses take to alter or improve their products to meet changing customer needs or to differentiate their offerings from competitors.

CDI

Consumer Discretionary Income; alternatively, in advertising, it can refer to Category Development Index, which assesses the potential for a brand or product based on the category sales performance in a specific market.