Procter & Gamble dropped the price of Pringle Potato Chips due to price competition and consumer demand.As a result of the price reduction,Procter & Gamble increased unit sales and earnings by 10 percent due to which of the following?

Question

Quizplus · Accepted Answer

The increase in unit sales and earnings due to a price reduction suggests that demand for Pringle Potato Chips is elastic. This means that consumers are responsive to changes in price and are more likely to purchase the product at a lower price, leading to an increase in both sales and revenue. Market share fluctuations, increases in both supply and demand, and price wars with other snack food makers do not fully explain the observed increase in sales and earnings.

Procter & Gamble Dropped the Price of Pringle Potato Chips