What happens when demand is elastic?
a. As price goes up, revenue goes down.
b. As price goes down, revenue goes down.
c. As price goes up, revenue goes up.
d. As price goes up, revenue does not change.
ANSWER: a
Elastic demand is a situation in which consumer demand is sensitive to price changes. The demand is said to be elastic if: (1) price goes up and revenue goes down (2) price goes down and revenue goes up.
You might also like to view...
Which of these identifies the appropriate expectations to have when emailing an instructor?
a. Wait until the last minute to email your instructors. They have to answer you then. b. Be patient. Instructors may have several hundred students to deal with. c. Instructors are supposed to respond within one hour, outside of class time. d. Instructors are in charge. They don't have to respond to you if they don't feel like it.
Explain how an inside sales force should provide support to an outside sales force
What will be an ideal response?