Which of the following is true of price elasticity?
A) When the price elasticity equals 0, we have unitary elasticity where the percentage change in volume is equal to the percentage change in price.
B) Price elasticity is almost always a negative number due to the inverse relationship between price and volume.
C) Prestige products that can see an increase in demand when their prices are increased have negative price elasticity.
D) Price elasticities between –1 and –10 are inelastic because the percentage change in volume is greater than the percentage change in price.
E) Price elasticities between zero and -1 are considered elastic, as the percentage change in volume is less than the percentage change in price.
B
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A) Subchapter Revision S Act B) novation act C) cooperate code act D) ultra vires act
A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this:
A. makes American businesses less competitive in the global marketplace. B. offers American businesses greater protection from foreign competitors. C. exposes consumers to greater product risks. D. eventually makes it cheaper for foreign companies to do business in the United States. E. discourages American companies from outsourcing jobs to less developed countries.