Which of the Following Statements About Price Elasticity of Demand

Multiple Choice

Which of the following statements about price elasticity of demand most accurate?

A) The more substitutes a product has,the more likely it is to be price elastic.
B) All products show some price inelasticity.
C) Nondiscretionary, (necessary) purchases are price elastic.
D) With inelastic demand,reducing price has a very large impact on revenues.
E) With inelastic demand,manufacturers change prices frequently to capitalize on consumer behavior.