4
QuizMultiple Choice

Study Guide and Quiz

Question 4 • Marketing -A -IC - USD232

If consumers start to believe they need a product, what is likely to happen?

Answer
A
The demand becomes less elastic.
B
The demand becomes more elastic.
C
The supply decreases.
D
The price decreases.

Explanation

When consumers believe a product is necessary, they are less likely to cut back on buying it when its price rises. That means the quantity demanded responds less to price changes, so demand becomes less elastic. The correct choice is “The demand becomes less elastic.”

AI-written and checked against the verified answer.

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