Generally speaking,a firm can set its price higher when which of the following is true?
A) demand is more fixed
B) demand is more inelastic
C) demand is more elastic
D) demand is more variable

Question

Quizplus · Accepted Answer

When demand is more inelastic, it means that consumers are less responsive to changes in price, and hence the firm can set a higher price without losing a significant amount of customers. This is because consumers are willing to pay a higher price for the product due to its unique or necessary nature, and they may have limited substitutes available to them.

Generally Speaking,a Firm Can Set Its Price Higher When Which