Because the guitars made by Washburn Guitars are endorsed by internationally known musicians, the owner of the company believes this reduces the price elasticity for the guitars. This means:
A.
slight increases in prices will decrease demand for the Washburn guitar.
B.
slight increases in prices will have no effect on demand for the Washburn guitar.
C.
the buyers of the Washburn guitar are extremely price sensitive.
D.
the demand for the guitar will stay the same no matter what the price increase.
Answer: B
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Marketing
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