If the demand for a product is inelastic, the seller should consider lowering price in order to increase quantity demanded.

Question

Quizplus · Accepted Answer

If the demand for a product is inelastic, lowering the price will not necessarily result in a significant increase in quantity demanded. Inelastic demand means that consumers are not very responsive to changes in price, so lowering the price may not have a significant impact on their willingness to purchase the product. In this case, the seller may not see a significant increase in revenue from lowering the price, as the increase in quantity demanded may not make up for the decrease in price. On the other hand, if the demand for a product is elastic, lowering the price can lead to a significant increase in quantity demanded, as consumers are more responsive to changes in price.

If the Demand for a Product Is Inelastic, the Seller