Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford.A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades manufacturers to double the price of the wiper blades.Sales volume for wiper blades has not been affected by this increase in price.The price did not change because demand for windshield wiper blades is:

Question

Quizplus · Accepted Answer

The fact that sales volume for wiper blades has not been affected by the double price increase indicates that demand for windshield wiper blades is inelastic. This means that customers are willing to pay the higher price because they have no choice but to purchase the product for safety reasons, regardless of the price.

Lanover Manufacturing Supplies Windshield Wiper Blades to General Motors and Ford.A