Asked by
shivani bajaj
on Oct 25, 2024Verified
A negative network externality causes demand to become:
A) more elastic.
B) less elastic.
C) unit elastic.
D) perfectly inelastic.
Network Externality
The effect that an additional user of a good or service has on the value of that product to others, often increasing the utility as more people use it.
Elastic
Refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price.
Inelastic
Describes a situation where a change in the price of a good or service has a relatively small effect on the quantity demanded or supplied.
- Assess the role of elasticity in demand and its implications for pricing and market strategies.
Verified Answer
VJ
Learning Objectives
- Assess the role of elasticity in demand and its implications for pricing and market strategies.