If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: A. more inelastic B. more elastic C. We do not have enough information to answer this question D. retain the same elasticity of demand

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Business

Diya Bentley

19 February, 03:49

If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: A. more inelastic B. more elastic C. We do not have enough information to answer this question D. retain the same elasticity of demand

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Skipper · Answer 1

Answer: If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: "A. more inelastic".

Explanation: Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. Therefore, if a company manages to differentiate its product, consumers will prefer it before other products, which will result in a more inelastic demand.