Online companies gather personal information about the customers who shop on their Web sites and some of those companies will use the data to estimate price elasticities of the 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.
A)high
B)low
C)negative
D)unitary

Question

Quizplus · Accepted Answer

Customers with a low price elasticity of demand are less sensitive to price changes, meaning they are willing to pay higher prices without significantly reducing their quantity demanded. Therefore, companies can charge higher prices to these customers.

Online Companies Gather Personal Information About the Customers Who Shop