________, the more it pays for the seller to raise the price.
A) The less inelastic the demand
B) The less elastic the demand
C) The less the quality of tied services
D) The more the sensitivity toward small price changes
E) The more intense the competition

Question

Quizplus · Accepted Answer

When demand is less elastic, it means that consumers are less sensitive to changes in price, so the seller can increase the price without losing too many customers. This in turn means that the seller stands to make more profit by raising the price when demand is less elastic.

________, the More It Pays for the Seller to Raise