The inertia shopping rule states that buyers will buy from the firm that charges the lowest price, but that, if they are already buying from a firm and another firm enters the market and offers a lower price, they give their current firm a chance to meet the entrant's price before shifting their business.

Question

Quizplus · Accepted Answer

The statement correctly defines the inertia shopping rule, which is based on the idea that buyers tend to stick with their current provider but will switch if a better offer is available elsewhere.

The Inertia Shopping Rule States That Buyers Will Buy from the Firm