Online companies gather personal information about the customers who shop on their websites,and some of those companies will use the data to estimate price elasticities of their customers.Doing this is a way that these companies might be able to charge a higher price for a product to those customers who have a ________ price elasticity of demand.

Question

Quizplus · Accepted Answer

Customers with a low price elasticity of demand are less sensitive to price changes, meaning they are willing to pay more for a product. Companies can charge higher prices to these customers without significantly affecting their purchasing behavior.

Online Companies Gather Personal Information About the Customers Who Shop