Question

Under which of the following situations is a company not likely to fix a lower price for its product?

पर्याय

• When the competition has introduced a substitute product.

• If the demand for a product is inelastic.

• When the company wants to attain market share leadership.

• When the demand for the product is low.

Answer 1

If the demand for a product is inelastic.

Explanation:

If demand is inelastic, consumers are not sensitive to price changes, so there’s no need to set a lower price. Thus, the company is not likely to fix a lower price in this case.