With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.
A)drop the price
B)raise the price
C)leave the price where it is
D)discontinue the item
E)bundle the product with another product

Question

Quizplus · Accepted Answer

When the demand for a product is less elastic, a change in price will result in a smaller change in quantity demanded. This means that sellers can raise the price without losing too many customers. Therefore, it is advantageous for them to raise the price in this scenario.

With an Understanding of Price Elasticity,sellers Should Know That the Less