2. T/F

If demand is inelastic, then an increase in price will result in an increase in profit.

3. T/F

The CRUDE model discussed in class lists the set of criteria used to judge the quality of a Positioning Statement. The 5 criteria of this model ensure that a Positioning is: Credible, Relevant, Unique, Differentiating, and Economical.

4. T/F

Before Apple introduced the i-Pod, mp3 players could only hold 33 songs, on average. The first generation i-Pod held over 1000 songs. According to Everett Rogers's five factors framework, one reason the i-Pod was quickly adopted by consumers was its relative advantage.

5. T/F

The more product items there are in a product line, the wider the product line is.