Question

Which of the following accurately describes the concern for marketers with respect to lowering prices for an inelastic product?a) The percentage increase in the total revenue of the company due to the lowered price may result in a higher level of competition in the market.b) The percentage increase in the quantity demanded for the product is much greater than the percentage decrease in the price of the product.c) Although this may result in an increase in the total revenue for the company, lowering price of an inelastic product can be illegal.d) Although this may result in an increase in the number of units sold, the total revenue of the company may eventually fall.e) Although this may result in an increase in the demand for the product, the company may not be able to keep up supply for the product

Answer 1

Correct answer is D) Lowering prices for an inelastic product result in an increase in the number of units sold and a fall in the total revenue of the company.

Step-by-step explanation:

Products with inelastic demand are those whose the percentage in the rise of the quantity demanded is lower than the percentage in the fall of the price.