Which of the following statements is FALSE about group pricing?
A)The lower the reservation price of a group, the more price-sensitive the group is.
B)The lower the reservation price of a group, the less the group members value the product.
C)The lower the reservation price of a group, the more inelastic the group's demand for the product.
D)The lower the reservation price of a group, the lower the marginal benefit from the product.

Question

Quizplus · Accepted Answer

The statement "The lower the reservation price of a group, the more inelastic the group's demand for the product" is false. Actually, the lower the reservation price of a group, the more elastic the group's demand for the product, meaning that they are more likely to change their consumption based on changes in price. The other statements are true.

Which of the Following Statements Is FALSE About Group Pricing