Answer:
a. -1.25
b. -1.25
Explanation:
Price elasticity measures how demand varies with price fluctuations.
The formula is:
= % change in Quantity / % change in Price
a. If the price moves from $1.00 to $1.50, the elasticity of demand will be:
% change in Quantity calculated using the midpoint method;
% Change in Price calculated with the midpoint formula
= -0.5/0.4
=-1.25
b. If the price decreases from $1.50 to $1.00, the elasticity of demand is:
% change in Quantity calculated using the midpoint formula;
% Change in Price calculated using the midpoint formula
= 0.5/-0.4
= -1.25
Response:
The correct choice is letter "E": Conviction.
Rationale:
The stages of buyer readiness illustrate the process that marketing identifies consumers undergo while making a purchase influenced by advertisements. These stages include: Awareness, Knowledge, Liking, Preference, Conviction, Purchase. In the stage of conviction, marketing is aimed at persuading customers of the product's appropriateness for them. The advertisement seeks to instill confidence in consumers regarding their purchasing decision. Consequently, motivating women to purchase rings for themselves fits within this stage.
Answer:
The first statement is false, while the second is true.
