Which of the following is TRUE regarding price elasticity?
A) The higher the elasticity, the lesser the volume growth resulting from a one-percent price reduction.
B) Long-run and short-run price elasticity may differ, delaying the impact of a price change.
C) If demand is elastic, sellers assume that lowering the price will decrease total revenue.
D) Price elasticity does not depend on magnitude and direction of the contemplated price change.
E) When demand is inelastic, sellers should lower prices in order to increase total revenue.
Answer: B) Long-run and short-run price elasticity may differ, delaying the impact of a price change.