Question

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example ofA) inelastic demand

B) direct purchasing
C) straight rebuy
D) the acceleration effect
E) modified rebuy

Answer 1

A) inelastic demand

Step-by-step explanation:

Demand is inelastic if a change in price has no effect on quantity demanded.

Changes in price has no effect on quantity of leather demanded. Therefore, the demand for leather is inelastic.

Direct purchasing is buying raw materials used in the production process.

Straight rebuy is purchasing similar goods from the same supplier under similar conditions.

Modified rebuy is purchasing similar goods either from a different supplier or in a different condition.