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:

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a specific jurisdiction, known as Generally Accepted Accounting Principles.

Income Statement

A financial document that shows a company's revenue and expenses over a specific period, ending with the net income or loss for that period.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting widely accepted in the accounting profession.

IFRS

Global accounting standards known as International Financial Reporting Standards, designed for the preparation of financial statements.