AMA Professional Certified Marketer PCM Question # 158 Topic 7 Discussion

AMA Professional Certified Marketer PCM Question # 158 Topic 7 Discussion

PCM Exam Topic 7 Question 158 Discussion:
Question #: 158
Topic #: 7

EZ, a manufacturer of electronic appliances, manufactures sandwich toasters, waffle makers, and sandwich-waffle makers. Recently, EZ reduced the price of sandwich-waffle makers by 20%. This increased the sales of sandwich-waffle makers by 20% and reduced the sale of sandwich toasters by 30% and waffle makers by 25%. Which of the following is true of this scenario?


A.

The price elasticity of sandwich-waffle makers is -2.


B.

The cross-price elasticity of sandwich-waffle makers and sandwich toasters is -1.


C.

The cross-price elasticity of sandwich-waffle makers and waffle makers is -2.


D.

Sandwich-waffle makers and sandwich toasters are likely to be substitute products.


E.

Sandwich-waffle makers and waffle makers are complementary products.


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