Asked by Alayna Guajardo on Sep 24, 2024
Verified
Acquiring a firm that sells a substitute good would make the demand curve for your original product
A) More inelastic
B) More elastic
C) Unchanged
D) None of the above
Demand Curve
A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at that price.
Substitute Good
A product or service that a consumer can use in place of another to satisfy the same need or desire.
- Comprehend the ramifications of complement and substitute products on pricing and marketing approaches.
Verified Answer
KK
Kamaljot Kaur Sidhu4 days ago
Final Answer :
A
Explanation :
Acquiring a firm that sells a substitute good would make the demand curve for your original product more inelastic because consumers would have fewer substitute options available, making them less sensitive to price changes in your product.
Learning Objectives
- Comprehend the ramifications of complement and substitute products on pricing and marketing approaches.