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 good.
E)Consolidated mustard has a normal demand curve.

Question

Quizplus · Accepted Answer

The demand increases as the price rises from 50 cents to $1.00, suggesting that Consolidated mustard may be perceived as a prestige good, where higher prices can lead to higher demand due to perceived value or status.

When Marketers at Consolidated Mustard Company Tried to Determine Demand