Sellers should know that the less elastic the demand for their product, the more advantageous it is for them to ________.
A) drop the price
B) raise the price
C) maintain the price
D) discontinue the item
E) bundle the item with another product

Question

Quizplus · Accepted Answer

If the demand for a product is less elastic, it means that consumers are less sensitive to changes in its price. Therefore, the seller can raise the price without losing a significant number of customers. This would result in higher profits for the seller.

Sellers Should Know That the Less Elastic the Demand for Their