In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.
A)derived
B)inelastic
C)joint
D)fluctuating
E)higher

Question

Quizplus · Accepted Answer

The fact that South Side Industrial Supply is confident about passing on the price increase to future customers suggests that the demand for the business products (truck tires) is inelastic, meaning that customers are less sensitive to price changes and are willing to pay more for the product.

In Placing a Tire Order with Michelin, South Side Industrial