Anon Corporation is a manufacturer of Widgets.Faced with increasing input material costs,the company is considering a 15-20 percent price increase.There are significant disagreements among senior personnel in the company about this move. Assuming other factors remain constant,Anon would have the most power to raise prices if Widgets were which of the following?

Question

Quizplus · Accepted Answer

Life-saving drugs are essential and often have inelastic demand, meaning consumers are less sensitive to price changes, giving Anon Corporation more power to raise prices.

Anon Corporation Is a Manufacturer of Widgets