Which of the Following Statements Is False Regarding Price Elasticity

question 40

Multiple Choice

Which of the following statements is false regarding price elasticity?

• A) The impact of price changes on sales volume is defined as price elasticity.
• B) Demand is elastic if a price increase has a large negative impact on sales volume.
• C) Demand is elastic if price changes have no impact on sales quantity.
• D) Demand is inelastic if price changes have little or no impact on sales quantity.

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Definitions:

Speak

To utter words or articulate sounds with the ordinary voice; to express thoughts, opinions, or information verbally.

Encourage

To support, inspire, or motivate individuals or groups to take action or to continue with an activity.

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.

Maintain

To keep something in an existing state or condition, preventing it from deteriorating or ensuring its continual effectiveness.