If the Demand for Widgets Is Inelastic, Revenues Will ______

question 15

Multiple Choice

If the demand for widgets is inelastic, revenues will ______ if the price of widgets increases.

• A)Increase
• B)Fall
• C)Remain the same
• D)One cannot tell what will happen to revenues without specific elasticity numbers

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Definitions:

Loyal Buyers

Consumers who repeatedly purchase the same brand or product, demonstrating fidelity and consistent preference over time.

Ancillary Services

Additional services or benefits provided beyond the primary product or service, often enhancing customer experience or value.

Promotional Mix

The combination of communication tools an organization uses to convey a clear, consistent, and compelling message about its brand and products.

Buyer Confidence

The degree of optimism that consumers feel about the overall state of the economy and their personal financial situation.