Price elasticity > 1 (absolute value) indicates demand is ______.
Inelastic
Elastic
Perfectly inelastic
Unitary
For inelastic goods, increasing price tends to ______ total revenue.
Increase
Eliminate
Not affect
Reduce
Price skimming sets a ______ initial price before lowering.
Zero
Negative
High
Low
Cross elasticity between substitutes is generally ______.
Positive
Negative
Infinite
Zero
Penetration pricing works best when demand is ______ and scale economies exist.
Zero
Inelastic
Perfectly elastic
Elastic
A vertical demand curve has elasticity equal to ______.
1
0
‑1
Infinity
Price discrimination requires ability to segment and prevent ______.
Competition
Arbitrage
Advertising
Substitution
Midpoint method uses ______ to calculate elasticity.
Average of initial and final values
Median household income
Initial values only
Final values only
In perfect competition, firms are ______.
Monopolies
Price takers
Oligopolies
Price makers
If elasticity = −1, total revenue is ______ when price changes slightly.
Unknown
Decreased
Increased
Unchanged
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