In B2B transactions demand is essentially _________. This means if suppliers raise their prices, most manufacturers will try to absorb the increases into their own cost structures to prevent letting their customers down in the short term, or because they are tied into fixed priced contracts.

Question

Quizplus · Accepted Answer

In B2B transactions, demand is essentially inelastic, meaning that changes in price have a relatively small effect on the quantity of the product demanded. This is because businesses often have specific needs that must be met regardless of price changes, and they may be under contracts or obligations that prevent them from easily switching suppliers.

In B2B Transactions Demand Is Essentially _________