You Make the Call, #3, Chapter 16, Page: 495
Question #1 What does the nature of this industry suggest about the elasticity of demand affecting Bowlin’s pricing? In the information given about Bowlin, it is said that it is not a must for the firm to reduce its price but rather improve the quality of its work. This means that the service provided by Bowlin is a necessity and therefore, the price reduction might have less influence on the customer demand on the service of the company. The service provided is fairly elastic but its elasticity relies on the quality of the service offered by the responsible firm ...
