Due to rapidly rising overhead costs and increases in raw material prices,Framarx Corporation was forced to raise the price of its waxed and coated paper by 35 percent.(The paper is used between frozen hamburger patties to keep the patties from freezing together. )Framarx is the leading manufacturer in this industry,and its competitors will follow suit.While the sales force for Framarx believes the price increase will result in a drop in sales,its marketing manager disagrees because the demand for the waxed and coated paper is more than likely:

Question

Quizplus · Accepted Answer

A good is price inelastic if a change in price causes little or no change in demand.Paper used between hamburger patties is a fairly insignificant cost item in the production of hamburger and might even be considered a necessity item.

Due to Rapidly Rising Overhead Costs and Increases in Raw