Asked by Cristina Valadez on Jun 06, 2024
Verified
In Scenario 13-1, if Merle saw that the price of lawn mowers had risen by 10 percent, but the overall sales volume of lawn mowers at local dealerships had fallen by only 1 percent, Merle could say that the demand for lawn mowers is ______.
A) price volatile
B) price inelastic
C) price elastic
D) price subjective
Price Elastic
A measure of how much the demand for a product or service changes in response to a change in its price.
Sales Volume
The number of units of a product or service sold by a company in a specified period.
Local Dealerships
Businesses authorized to sell and service vehicles from specific manufacturers within a designated geographic area.
- Understand the concept of price elasticity and how it impacts consumer demand.
Verified Answer
AC
Athena Colleen BaenaJun 10, 2024
Final Answer :
B
Explanation :
The demand for lawn mowers is price inelastic because a significant price increase (10 percent) resulted in only a small decrease in sales volume (1 percent), indicating that consumers' purchasing behavior is not highly sensitive to price changes in this case.
Learning Objectives
- Understand the concept of price elasticity and how it impacts consumer demand.