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.The pricing strategy for the system should be:
A) low initial price,rising slightly when entering the growth stage
B) high initial price,falling slightly when entering the growth stage
C) high price,continuing through growth and maturity
D) low price,continuing through growth and maturity
E) low prices initially,rising constantly through growth and into maturity

Question

Quizplus · Accepted Answer

Since there is no existing competition and demand is inelastic, the company can set a high initial price to capture the maximum amount of revenue from early adopters. As the system enters the growth stage, the price can be lowered slightly to stimulate further demand from the broader market. This strategy follows a typical pricing strategy for new technological innovations.

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