Asked by Anita Inthavong on Jul 12, 2024
Verified
In U.S. markets, there are many substitute products for Head & Shoulders dandruff shampoo, suggesting the price elasticity of demand for Head & Shoulders is high.
Substitute Products
Products for which changes in demand are negatively related; that is, a percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.
Demand
The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period.
- Determine the effects of price responsiveness of demand for assorted products.
Verified Answer
BS
Bradley SmithJul 18, 2024
Final Answer :
True
Explanation :
The availability of substitute products indicates that consumers have options and are more likely to switch to a different brand if the price of Head & Shoulders increases, making the demand for Head & Shoulders relatively elastic.
Learning Objectives
- Determine the effects of price responsiveness of demand for assorted products.