Which of the following statements regarding price elasticity is false?
A) The concept of price elasticity is an extension of the economic pricing model.
B) Demand is elastic if a price change has a large negative impact on sales volume.
C) Demand is elastic if price changes have no impact on sales volume.
D) Measuring price elasticity is an important objective of market research.
E) Demand is relatively inelastic if price changes have little impact on sales quantity.

Question

Quizplus · Accepted Answer

Demand is considered elastic when a small change in price leads to a significant change in the quantity demanded. The statement that demand is elastic if price changes have no impact on sales volume is false because if there's no impact, it indicates perfectly inelastic demand, not elastic demand.

Which of the Following Statements Regarding Price Elasticity Is False