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A demand inelastic good (as opposed to a supply inelastic good) is a good that is essential to the well-being of individuals in the market. So certain staple food, such as maize, wheat, etc. are inelastic because they are a life requirement (these would be about as close to perfectly inelastic as you could get).
In order for a firm to make their product inelastic they would benefit from making their product unique, or making it seem unique to the consumer, this is called 'branding' and or 'product differentiation'. The actual product doesn't have to be entirely unique, but should have a unique feature. The producer may differ themselves from the rest in some significant way (donating to charity, sponsoring events, employing locals etc.).
Either make the good (or a particular unique feature of it) somewhat of a necessity for the consumer to have, or play on emotions; either way the brand loyalty among consumers will increase.
There are also methods concerning 'predatory pricing' and 'exclusive dealings', however these would require the firm in question to be established as they involve eliminating substitutes for the product.
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A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
Is salt an elastic or inelastic product?
Inelastic
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
A price cut will increase the revenue a firm receives if the demand for its product is?
Either elastic or inelastic
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
Is salt an elastic or inelastic product?
Inelastic
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.
Why a firm may develop a new product?
A firm would usually do that because it expects to sell the product, and make a profit.
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
When the price of a product rises and the total revenue of sellers increase?
You have an inelastic product.
If the prices have a little effect on the quantity of a product demanded the product is said to have?
inelastic demand
What is meant by price inelastic?
Price inelastic means that the supply or demand of a product or service is unaffected by any changes in the price.
The purpose of advertising and other forms of non-price competition by a firm is to shift it's D-Curve to right or left and make it inelastic or elastic?
The purpose of advertising and other forms of non-price competition is to shift demand up and make it inelastic, also called the d curve.
What is the importance of elasticity of demand and supply?
Elasticity of demand to firms are important because they represent the nature of the goods they are dealing in. For example if a firm produces goods with inelastic demand they will be able to earn high profits because even if they increase the price of the goods, since the change in demand will be less than the change in price. Also if there is a tax they will share less of the burden. This means they can keep prices high and not have to worry about a lot of things. However, if a firm were to produce goods with elastic demand, then they will have to make sure the price of the good remains low and if there is a tax they will be the ones who share the majority of the burden.
