Suppose a colleague claims that if the price elasticity of demand for the company's good is inelastic, then raising the price of the good will lead to higher sales. This is example of what type of reasoning?
A) Inductive reasoning
B) Indirect causal relationship
C) Deductive reasoning
D) Proof by transposition

Question

Quizplus · Accepted Answer

The statement is an example of deductive reasoning, as it is based on the assumption that if the price elasticity of demand is inelastic, then raising the price will lead to higher sales. This is a logical deduction based on the theory of elasticity.

Suppose a Colleague Claims That If the Price Elasticity of Demand