When the demand curve is highly inelastic, there is a strong incentive for suppliers to find a way to collectively reduce the quantity sold in the market and raise the price of the product.

Question

Quizplus · Accepted Answer

When the demand curve is highly inelastic, consumers are less sensitive to price changes, so reducing supply can lead to higher prices and increased revenue for suppliers.

When the Demand Curve Is Highly Inelastic, There Is a Strong