marketing analysis

The elasticity of demand for tissues is less than 1. This means the demand for tissues is

• elastic

• unit elastic

• inelastic

• really expensive

Elasticity refers to

• how producers of goods and services react to price changes

• how consumers of goods and services react to price changes

• how far a supply of scarce goods can be stretched

• how often the price of a good or service changes when quantity demanded changes

Water has seen an increase in demand 8% this summer, while the price has decreased 12%

• 1.5 inelastic

• 1.5 elastic

• .67 inelastic

• .67 elastic

Wheat has seen a decrease in demand of 5%, while the price has increased 7%

• 1.4 inelastic

• 1.4 elastic

• .71 inelastic

• .71 elastic

What is an inferior good?

• A good whose demand increases when consumer income rises

• A good whose demand decreases when consumer income rises

• A good whose demand remains constant when consumer income rises

• A good whose demand is unaffected by consumer income changes.

What defines a good as 'normal'?

• It is a necessity

• Demand increases with income

• It is a luxury item

• It is always in demand.

If a good is a necessity, what is the typical range for its income elasticity of demand?

• Less than 0

• Between 0 and 1

• Greater than 1

• Equal to 0

If a good has a YED of 0.5, what type of good is it likely to be?

• Luxury good

• Necessity good

• Inferior good

• Substitute good

What is the YED if the % change in quantity demanded is 10% and the % change in income is 5%?

• 0.5

• 1.0

• 2.0

• 1.5

Which of the following phases are in the product life cycle?

• Product development

• Introduction

• Growth

• Product replacement