The price elasticity of demand for a product with high brand loyalty will be;Group of answer choicesPerfectly elasticInelasticinfinite elasticElastic
Question
The price elasticity of demand for a product with high brand loyalty will be;Group of answer choicesPerfectly elasticInelasticinfinite elasticElastic
Solution
The price elasticity of demand for a product with high brand loyalty will be Inelastic.
Here's why:
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Price elasticity of demand measures how responsive demand is to a change in price.
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If a product has high brand loyalty, it means consumers will continue to buy it even if the price increases. They are loyal to the brand and not easily swayed by price changes.
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This lack of sensitivity to price changes is what we call inelastic demand. In other words, the quantity demanded does not change significantly when the price changes.
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Therefore, for a product with high brand loyalty, the price elasticity of demand is inelastic.
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