Questions 1: Increase in selling price followed by no change in demand for the product will :
Question
Questions 1: Increase in selling price followed by no change in demand for the product will :
Solution
When the selling price of a product increases, it can have an impact on the demand for that product. In this scenario, if there is no change in the demand for the product despite the increase in selling price, it suggests that the product has an inelastic demand.
Step 1: Identify the situation: The situation described is an increase in selling price with no change in demand for the product.
Step 2: Understand the concept of demand elasticity: Demand elasticity refers to the responsiveness of the quantity demanded of a product to changes in its price. It can be classified as elastic or inelastic.
Step 3: Determine the type of demand: In this case, since there is no change in demand despite the increase in selling price, it indicates that the demand for the product is inelastic.
Step 4: Interpret the implications: When the demand for a product is inelastic, it means that consumers are not very sensitive to changes in price. Therefore, an increase in selling price does not significantly affect the quantity demanded.
Step 5: Consider the implications for the business: If the demand for a product is inelastic, a business can potentially increase its profit by raising the selling price without experiencing a significant decrease in demand.
In conclusion, an increase in selling price followed by no change in demand for the product suggests that the product has an inelastic demand, indicating that consumers are not very responsive to changes in price.
Similar Questions
In the short run, an increase in market demand will usually lead to a(n)Question 1Select one:a.decrease in price and a decrease in quantity.b.increase in price and a decrease in quantity.c.decrease in price and an increase in quantity.d.increase in price and an increase in quantity.
f the demands for goods is price elastic, an increase in its price will increase total revenue in that market.Question 2AnswerTrueFalse
In a competitive market,a.only a few sellers sell the same product.b.if one buyer chooses to purchase a large quantity of the product, the price will rise.c.if one seller withholds his product from the market, prices will rise.d.each seller has limited control over the price of his product.
a. If price increases by 10 percent and quantity demanded decreases by 15 percent, demand is . b. If price decreases by 10 percent and quantity demanded increases by 5 percent, demand is .
Question 2If demand is elastic, then a 5% increase in price will cause:1 pointa decrease in quantity demanded of more than 5%.a decrease in quantity demanded of less than 5%.no change in quantity demanded.a decrease in quantity demanded of exactly 5%.
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