In a rising income scenario, the obvious decision choices of firms having very low income elasticity…
When consumer incomes are rising, products with very low income elasticity of demand experience stagnant growth unless the firm upgrades value; consequently, the strategic…
Choose your answer
In a rising income scenario, the obvious decision choices of firms having very low income elasticity for their products would be:
a. Search for new markets
b. Product innovation
c. Discontinuation of product line
d. Product line extension
e. Exporting Choose the most appropriate answer from the options given below
Answer and explanation
Correct answer C
When consumer incomes are rising, products with very low income elasticity of demand experience stagnant growth unless the firm upgrades value; consequently, the strategic choices are (b) product innovation and (d) product line extension to introduce higher-margin, income-elastic variants.
Practice for these exams
-
UGC NET Management