One of the implications of price elasticity of technology products is that:
A) the cost of a semiconductor chip fabrication plant doubles every four years.
B) the magnetic disk areal storage density doubles annually.
C) customers buy more products as they become cheaper.
D) the value of chips in semiconductor-based devices appreciates every six months.
E) firms stock up on tech products and sell them once their prices increase.

Question

Quizplus · Accepted Answer

Price elasticity of technology products means that customers are sensitive to changes in price and will buy more products as they become cheaper. Therefore, option C is the correct implication. The other options are not related to price elasticity but rather refer to other aspects of the technology industry such as production cost, storage density, value appreciation, and stock management.

One of the Implications of Price Elasticity of Technology Products