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When Consumers Are Brand Loyal, the Term Inelasticity of Demand

Question 67

Multiple Choice

When consumers are brand loyal, the term inelasticity of demand is often used.This means that


A) consumers won't accept price increases for a particular product category.
B) consumers are less sensitive to price increases for a brand they like.
C) firms have the flexibility to lower prices if this will increase sales.
D) firms may decrease production in order to increase demand.

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