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Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
Wiki User
∙ 8y ago
The firm would raise the price because the firm's total revenues would probably increase.
Wiki User
∙ 8y ago
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What is inelastic?
Inelastic is something which is not flexible. You cannot stretch any inelastic product, whereas you can easily stretch the products which are flexible.There are two types of elasticities in economics.1. Elastic2. inelastic
Is salt an elastic or inelastic product?
Inelastic
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
What might happen to make a producer decrease his or her supply of a product.?
Because if the factor price is increased, the producer will have less resources to make their product and will have less products to supply
A product that has few substitutes tends to be?
Inelastic
What is inelastic?
Inelastic is something which is not flexible. You cannot stretch any inelastic product, whereas you can easily stretch the products which are flexible.There are two types of elasticities in economics.1. Elastic2. inelastic
Is an apple a producer or a consumer?
Apple is a producer, they make products
Is salt an elastic or inelastic product?
Inelastic
What is the influence of branding on price sensitivity?
The main purpose of branding products is to create relatively inelastic demand for the product
Who makes products?
A "product" is provided by a "producer", builder, or manufacturer.
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
Which group determines a product's position relative to competing products?
retailers
Is cotton elastic or inelastic product?
Cotton is an inelastic product, meaning its quantity demanded does not change significantly with price fluctuations. This is because cotton is a basic necessity and its demand remains fairly stable regardless of price changes.
What might happen to make a producer decrease his or her supply of a product.?
Because if the factor price is increased, the producer will have less resources to make their product and will have less products to supply
How does consumers purchases influence the decisions of producers?
If consumers didn't buy a producer's products, the producer would soon go out of business.
A product that has few substitutes tends to be?
Inelastic
What is the difference between a manufacturer and a producer?
A manufacturer makes products from raw materials and/or by assemling pre-manufactured components. A producer provide a product or service which may or may not require a manufacturing process. A farmer is a producer. A banker is a producer. A manufacturer is a producer. However, a producer is not necessarily a manufacturer.
