Asked by Elisabeth breivik Nilsen on Jul 12, 2024
Verified
Geoff customizes Trek trail bikes. No two bikes are alike. He notices that very few customers even ask the price of his trail bikes before they decide to purchase them. Demand for his trail bikes is probably
A) price sensitive.
B) price elastic.
C) price inelastic.
D) income elastic.
E) cross-price elastic.
Price Inelastic
Describes a situation where the demand for a good or service does not significantly change with a change in its price.
Trail Bikes
are specifically designed bicycles for off-road cycling, built to handle rugged trails and terrain.
Customizes
Refers to the process of making or altering something according to the user's individual preferences or needs.
- Comprehend the degree to which demand for products and services is affected by price fluctuations.
Verified Answer
AE
aning edward stephenJul 14, 2024
Final Answer :
C
Explanation :
The fact that very few customers even ask the price indicates that they are willing to pay whatever price Geoff sets for his trail bikes. This suggests that the demand for his bikes is not very responsive to changes in price, making it price inelastic.
Learning Objectives
- Comprehend the degree to which demand for products and services is affected by price fluctuations.
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