For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

Question

Quizplus · Accepted Answer

The concept of inelasticity of demand does not apply equally to industry demand for the product and to demand for an individual supplier because industry demand can be inelastic (not sensitive to price changes) due to the lack of close substitutes, while demand for an individual supplier might be more elastic if customers can easily switch between different suppliers within the industry.

For Business Products, the Concept of Inelasticity of Demand Applies