When consumers are loyal to a particular product and the product's price increases, the producer's total revenue
A) increases.
B) decreases.
C) stays the same.
D) The answer cannot be determined based on the information provided.

Question

Quizplus · Accepted Answer

When consumers are loyal to a particular product, they are less sensitive to price changes. This means they are likely to continue buying the product even if its price increases, leading to an increase in the producer's total revenue.

When Consumers Are Loyal to a Particular Product and the Product's