Why might the demand for business products be INELASTIC, while the demand facing individual sellers of those products is extremely ELASTIC?
A) Because total demand for business products often exceeds supply.
B) Because most business producers use haggling in their buying.
C) Because the demand for business products is derived, and some industries have many sellers of essentially homogeneous products.
D) Because the industry demand is rising.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The demand for business products is often derived from the demand for consumer products, meaning that businesses purchase these products to create or sell their own goods or services. This creates a relatively stable demand for business products, leading to inelastic demand. However, individual sellers of these business products face elastic demand because they often compete with many other sellers offering essentially the same products, and buyers can easily switch between them based on price or other factors. This makes it difficult for individual sellers to raise prices without losing business.

Why Might the Demand for Business Products Be INELASTIC, While