Question

2. Among the following groups – senior executives, junior executives, and students – which is likely to have the most and which is likely to have the least price-elastic demand for membership in the Association of Business Professionals?

Answer 1

Answer: The group with the most price elastic demand: students

The group with the least price elastic demand: senior executives

Explanation: This is because seniors will tend to pay more price than students. Senior are more professional than other groups, so the association's reputation is more important for seniors.