Which of the following statements about price elasticity of demand is incorrect?

Select one:

a.Price elasticity of demand measures how responsive demand is to a price change.

b.Elastic demand implies that there are many close substitutes.

c.A firm's profit margin depends on the elasticity of demand.

d.Inelastic demand implies a firm's high market power.

e.The higher a firm's markup, the higher the price elasticity of demand.