When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude?
A) Consolidated did poor market demand research.
B) Consolidated has an elastic product.
C) Consolidated has an inelastic product.
D) Consolidated mustard is a prestige product.
E) Consolidated mustard has a normal demand curve.

Question

Quizplus · Accepted Answer

The demand increases as the price increases from 50 cents to $1.00, which is characteristic of a prestige product where higher prices may increase demand due to perceived value.

When Marketers at Consolidated Mustard Company Tried to Determine Demand