Price Elasticity of Demand Is Determined by a Number of Factors

question 174

Multiple Choice

Price elasticity of demand is determined by a number of factors, such as the necessity of the product or service, the cash outlay of the purchase relative to a person's disposable income, and

• A)the stage of the product or service in its product life cycle.
• B)the degree of carrying costs for the manufacturer or distributor.
• C)the availability of substitutes.
• D)the financial resources of the organization itself.
• E)the ability of the organization to meet sudden increases in demand.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business or enterprise.

Product Innovations

Refers to the introduction of a new or significantly improved product or service that meets new requirements or satisfies existing market needs.

Incremental Improvements

Small, continuous enhancements made to a product or process over time, aiming for better efficiency or performance.

R&D Expenditures

Research and Development (R&D) Expenditures refer to the funds allocated by businesses or governments towards the investigation and development of new products, processes, or services.