When Laser Technology developed and introduced a high-tech crash investigation system to be used by law enforcement officers,the company determined that demand for the product was inelastic,and there was no existing competition.What should be the pricing strategy for the system?
A) low initial price,rising constantly through growth and into maturity
B) high initial price,falling slightly when entering the growth stage
C) high price,continuing through growth and maturity
D) low initial price,rising slightly when entering the growth stage

Question

Quizplus · Accepted Answer

Since the demand is inelastic and there is no competition, a high initial price can be set to maximize profits. As the product enters the growth stage, the price can be slightly reduced to attract more customers and increase market penetration.

When Laser Technology Developed and Introduced a High-Tech Crash Investigation