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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Mastering Pricing & Elasticity Basics Interview Questions empowers you to analyze how price fluctuations impact demand effectively. Start by exploring our marketing principles & concepts interview questions to solidify your understanding of core economic models. Then challenge yourself with the consumer perception bias interview MCQs, examine adoption patterns using the diffusion of innovation interview questions, and enhance your customer strategy through the relationship marketing tenets interview resources. Working through these interview questions will give you the confidence to discuss pricing strategies with clarity.
