AMA Exam PCM Topic 7 Question 1 Discussion

Actual exam question for AMA's PCM exam

Question #: 1
Topic #: 7

Which of the following is true of price elasticity?

AThe lower the number of substitute products, the higher the price elasticity of demand for a given product.

BRises in income can lead to drops in price elasticity even though product prices are constant.

CProducts for which demand is highly inelastic are susceptible to minor changes in price.

DGenerally, if demand for a product is inelastic, lowering the price will appreciably increase demand.

EConsumers are generally more sensitive to price decreases than to price increases.

Show Suggested Answer

Suggested Answer: B

by Arminda at May 03, 2022, 09:29 AM

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