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:

Direct Materials Cost

The expense associated with the raw materials directly used in the production of goods.

Unadjusted Cost

The initial cost of an item or service before any adjustments like discounts, allowances, or modifications are made.

Cost of Goods Sold

The specific costs incurred in the making of goods that a company sells, which include materials and labor.

Schedule

A structured plan that outlines the times at which certain tasks, events, or activities are intended to occur.