Loss leaders primarily rely on which of these to maximize revenue?
A) income elasticity of demand
B) price elasticity of demand
C) cross elasticity of demand
D) price elasticity of supply

Question

Quizplus · Accepted Answer

Loss leaders primarily rely on cross elasticity of demand to maximize revenue. This strategy involves selling a product at a loss to attract customers, who will then purchase other, more profitable items. The effectiveness of this approach depends on the cross elasticity of demand, which measures how the demand for one product affects the demand for another.

Loss Leaders Primarily Rely on Which of These to Maximize