Asked by Minh Anh Tr?n Ng?c on Jul 17, 2024
Verified
By focusing the customers on the price of a product,you make
A) The demand for the product more inelastic
B) The customers less price sensitive to the product
C) The demand for the product more elastic
D) Only B&C
Price Sensitive
The degree to which the demand for a product or service is affected by changes in its price.
More Elastic
Refers to a situation where the demand for a product is more responsive to changes in price or other factors.
- Acknowledge how promotional activities affect the flexibility of demand for goods.
Verified Answer
MN
Moosa Nayeem MohammedJul 20, 2024
Final Answer :
C
Explanation :
Focusing on the price of a product makes customers more sensitive to the price and therefore, the demand for the product becomes more elastic. Elastic demand means that a small change in price leads to a significant change in the quantity demanded of the product. Therefore, the seller needs to be careful when changing the price of a product as it can have a significant impact on demand.
Learning Objectives
- Acknowledge how promotional activities affect the flexibility of demand for goods.
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