Companies are fortunate to have demand that is more ________ because they may be able to set higher prices.
A) elastic
B) external
C) internal
D) inelastic
E) fixed

Question

Quizplus · Accepted Answer

When demand for a product or service is inelastic, it means that consumers are willing to pay a higher price for it, and the quantity demanded does not change significantly in response to changes in price. This gives companies the ability to set higher prices without fearing a significant drop in sales. Therefore, companies are fortunate to have inelastic demand because it allows them to potentially increase their profits.

Companies Are Fortunate to Have Demand That Is More ________