A sign company creates and prints the full-sized vinyl sheets that make it quick and easy to change the promotion on a billboard.If a change in the price of petroleum (a necessary ingredient for the production of plastic)forced manufacturers of vinyl sheets to increase their price by 20 percent,the company would still need to buy the same amount to meet its customers' needs.Therefore,demand for vinyl sheets by companies that use this product to create billboard ads is ________.

Question

Quizplus · Accepted Answer

The demand for vinyl sheets by companies that use it to create billboard ads is likely to be inelastic because even if the price of vinyl sheets increases by 20 percent, the sign company still needs to buy the same amount to meet its customers' needs. This suggests that the sign company has few or no close substitutes for vinyl sheets and therefore, cannot easily reduce their demand for it.

A Sign Company Creates and Prints the Full-Sized Vinyl Sheets