A status-conscious market that insists on products with established reputations will be inelastic, allowing for far more pricing freedom than a market where price-consciousness drives demand.

Question

Quizplus · Accepted Answer

In an inelastic market, consumers are not as price sensitive and are more focused on established reputations, meaning that there is more pricing freedom for businesses. On the other hand, in a market driven by price-consciousness, consumers are more likely to switch to lower-priced alternatives, making the demand more elastic and limiting the pricing freedom of businesses.

A Status-Conscious Market That Insists on Products with Established Reputations