kendra always buys and uses wilson brand tennis balls. if she finds a penn or dunlop ball on the court, she gives it away. brand-loyal tennis players like kendra allow wilson to charge a higher price and not lose many sales. by building a strong brand, wilson has effectively

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01-11-2021
Business

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kendra always buys and uses wilson brand tennis balls. if she finds a penn or dunlop ball on the court, she gives it away. brand-loyal tennis players like kendra allow wilson to charge a higher price and not lose many sales. by building a strong brand, wilson has effectively

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Baraq Baraq · Answer 1 · 2021-11-05T12:46:41-04:00

Considering the situation above, by building a strong brand, Wilson has effectively "reduced the price elasticity of demand for its products."

This is because the price elasticity of demand is a term in economics that defines the sensitivity of the quantity demanded of a commodity to its price.

Usually, the price elasticity of demand shows that when the price of a commodity increase, the quantity demanded decreases.

Thus, in this case, since it is said that Kendra allowed Wilson to charge a higher price and not lose many sales, therefore, Wilson has been able to reduce the price elasticity of demand for its products.

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