Why are materials that represent only a small percentage of the total cost of manufacturing a product more likely to have inelastic demand than major components?
What will be an ideal response?
Inelastic demand means the demand stays the same for a component no matter how its price changes. For a smaller component part, the costs of finding a new supplier would probably outweigh any benefits to be gained from paying less. As the price of the component part becomes a larger percentage of the item, there is a point where it is cost-effective to find a new, less expensive supplier.
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Indicate whether the statement is true or false
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To become a successful salesperson, Sanchez had to adopt a personal selling philosophy. Which of the three prescriptions of that philosophy is not only a mindset but a skill that he has practiced and honed to become successful?
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