Business Studies Multiple Choice Question – 25 December 2022

Read statements 1 and 2 and select the correct option from the following options:

• Statement 1: ‘Penetration pricing is more likely to be used if demand is price inelastic.’
• Statement 2: ‘Price skimming is more likely to be used if demand is price elastic.’

Select ONE answer:

1. Statement 1 is true. Statement 2 is true
2. Statement 1 is true. Statement 2 is false
3. Statement 1 is false. Statement 2 is true
4. Statement 1 is false. Statement 2 is false

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.