Questions
Single choice
If a company needs to raise the prices of some its products, it should choose to raise the prices of Blank ______ products because relatively fewer customers will stop buying the product as a result.
Options
A.inelastic
B.commodity
C.elastic
D.moderately priced
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Step-by-Step Analysis
When a firm considers raising prices, the impact depends on how sensitive buyers are to price changes.
Option 1: 'inelastic' — This choice correctly identifies products with inelastic demand, where quantity demanded changes little when price chan......Login to view full explanationLog in for full answers
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Question6 An Australian company that exports its product to the US market needs to make a decision on the price of its product in the US. Recently, the USD has depreciated and its profit in AUD has been affected. Which of the following statements is TRUE? Select one alternative: If the elasticity of US demand to price is extremely low, the firm can consider increasing the price of its product to increase profit in AUD. If there is a substantial scale of economy in production, the firm should increase the price of its product since it will increase the margin of the product. The firm can maintain its margin in AUD and market share in the US by not changing its price. The firm should not consider setting up a production plant in the US, since it would certainly increase its exposure to the USD. ResetMaximum marks: 2 Flag question undefined
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