If you are a marketing specialist working for the cell phone company, refer to your answers from table 1 and select from below the group should receive the most discount and why? Students should receive the highest discount as they are the most price sensitive or price elastic. Students should receive the highest discount as they are the least price sensitive or price elastic. Working adults should receive the highest discount as they are the least price sensitive or price inelastic. Working adults should receive the least discount as they are the most price sensitive group.

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Chapter5: Price Elasticity Of Demand And Supply
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If you are a marketing specialist working for the cell phone company, refer to your answers from table 1 and select from below the group should receive the most
discount and why?
O Students should receive the highest discount as they are the most price sensitive or price elastic.
O Students should receive the highest discount as they are the least price sensitive or price elastic.
Working adults should receive the highest discount as they are the least price sensitive or price inelastic.
Working adults should receive the least discount as they are the most price sensitive group.
Transcribed Image Text:If you are a marketing specialist working for the cell phone company, refer to your answers from table 1 and select from below the group should receive the most discount and why? O Students should receive the highest discount as they are the most price sensitive or price elastic. O Students should receive the highest discount as they are the least price sensitive or price elastic. Working adults should receive the highest discount as they are the least price sensitive or price inelastic. Working adults should receive the least discount as they are the most price sensitive group.
Table 1: cell phone elasticities by consumer groups and marginal costs
Consumer groups
Price elasticity of
MC
Price
demand
-1.25
-1.35
Working adults
High income households
Senior citizens
Students
-1.7
-2
$200
$200
$200
$200
Transcribed Image Text:Table 1: cell phone elasticities by consumer groups and marginal costs Consumer groups Price elasticity of MC Price demand -1.25 -1.35 Working adults High income households Senior citizens Students -1.7 -2 $200 $200 $200 $200
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