When Does the Elasticity of Demand for a Firm's Product

question 40

Multiple Choice

When does the elasticity of demand for a firm's product increase substantially?

• A) When an industry is no longer concentrated
• B) When there is decreased consumer attention to quality
• C) When there is nonavailability of labor
• D) When there is a lack of substitute products

---

Definitions:

Price Skimming

Charging the highest possible price that buyers who want the product will pay.