The price elasticity of demand for a product with high brand loyalty will be;Group of answer choicesPerfectly elasticInelasticinfinite elasticElastic
Question
The price elasticity of demand for a product with high brand loyalty will be:
- Perfectly elastic
- Inelastic
- Infinite elastic
- Elastic
Solution
The price elasticity of demand for a product with high brand loyalty will be Inelastic.
Here's why:
-
Price elasticity of demand measures how responsive demand is to a change in price.
-
If a product has high brand loyalty, it means consumers will continue to buy it even if the price increases. They are loyal to the brand and not easily swayed by price changes.
-
This lack of sensitivity to price changes is what we call inelastic demand. In other words, the quantity demanded does not change significantly when the price changes.
-
Therefore, for a product with high brand loyalty, the price elasticity of demand is inelastic.
Similar Questions
The price elasticity of demand for a product with high brand loyalty will be;Group of answer choicesPerfectly elasticInelasticinfinite elasticElastic
the price elasticity of supply is A. Perfectly inelastic B. Elastic C. Unitary D. Inelastic E. Perfectly elastic
What type of goods have a price elasticity of demand that is inelastic?Luxury goods.Necessities.Substitute goods.Complementary goods
The percentage change in the quantity of one product demanded compared with the percentage change in price in another product is called -price elasticity.
The market demand curve for a perfectly competitive industry __.Multiple choice question.slopes downwardis perfectly inelasticis perfectly elasticslopes upward
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.