Consumers loyal to a particular retailer will pay higher prices for the privilege of shopping at that retail outlet. In terms of price elasticity, these consumers would tend to display price _____ behavior in terms of where they shop.
A) inelastic
B) elastic
C) elastic behavior for price decreases, but inelastic behavior for price increases
D) inelastic behavior for price decreases, but elastic behavior for price increases

Question

Quizplus · Accepted Answer

Consumers who are loyal to a retailer and willing to pay higher prices exhibit inelastic behavior, meaning their demand does not significantly change with price increases.

Consumers Loyal to a Particular Retailer Will Pay Higher Prices