Which of the following statements is true? 1. All other things equal including costs, if customers are more sensitive to price for one product than another, then to maximize profit the first product should have a higher price. 2. The sensitivity of unit sales to changes in price is called the price elasticity of demand. 3. Demand for a product is said to be elastic if a change in price has little effect on the number of units sold. 4. Generally speaking, managers should set higher prices when demand is elastic and lower prices when demand is inelastic