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AMA PCM Exam - Topic 7 Question 1 Discussion

Which of the following is true of price elasticity?
B) Rises in income can lead to drops in price elasticity even though product prices are constant.
A) The lower the number of substitute products, the higher the price elasticity of demand for a given product.
C) Products for which demand is highly inelastic are susceptible to minor changes in price.
D) Generally, if demand for a product is inelastic, lowering the price will appreciably increase demand.
E) Consumers are generally more sensitive to price decreases than to price increases.

AMA PCM Exam - Topic 7 Question 1 Discussion

Actual exam question for AMA's PCM exam
Question #: 1
Topic #: 7
[All PCM Questions]

Which of the following is true of price elasticity?

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Suggested Answer: B

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

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Reta
8 months ago
Wait, are we really more sensitive to price drops? That seems off!
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Johnathon
8 months ago
D is misleading, inelastic demand means price changes don't really affect quantity much.
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Nicolette
8 months ago
B is interesting, I hadn't thought about income affecting elasticity like that.
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Hershel
8 months ago
I agree with E, people love a good sale!
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Dannie
8 months ago
A is definitely wrong, more substitutes mean higher elasticity.
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Rasheeda
8 months ago
I'm a bit unsure about the relationship between inelastic demand and susceptibility to price changes. I'll need to think this through carefully.
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Bette
9 months ago
Ah, I remember this topic. The part about consumers being more sensitive to price decreases is an important nuance to keep in mind.
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Alyce
9 months ago
Okay, I think I've got this. The key is to focus on how changes in income and price affect demand elasticity. I'm ready to give it a shot.
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Lisha
9 months ago
Hmm, the relationship between price elasticity and number of substitutes is tripping me up. I'll need to review that part of the material.
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Anglea
9 months ago
This question on price elasticity seems straightforward, but I want to make sure I understand the concepts before selecting an answer.
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Eric
9 months ago
This question seems straightforward, but I want to make sure I understand the key functions of metadata in SIP recording before answering.
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Emelda
10 months ago
This question is asking about features that can help reduce call volume in a contact center. I'll need to think about the different Salesforce features that could help with that.
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