Which of the following is true about e-commerce?
A) E-commerce results in an increase in inventory-carrying costs.
B) E-commerce facilitates better measurement of price elasticity.
C) E-commerce decreases market efficiency.
D) E-commerce reduces the flow of price data.

Question

Quizplus · Accepted Answer

E-commerce facilitates better measurement of price elasticity. With e-commerce, it is easier to track and analyze customer behavior and preferences, which makes it easier to measure price elasticity and adjust pricing accordingly. E-commerce can actually reduce inventory-carrying costs and increase market efficiency by providing easier access to products and services. It also increases the flow of price data as pricing is often transparent and easily accessible to customers.

Which of the Following Is True About E-Commerce