n NISM Certifications
XV NISM Series XV
Medium

A company raises its product prices, yet demand does not fall. What could explain this phenomenon?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Pricing power of the business

  2. B

    Brand loyalty of the customers

  3. C

    Addiction of consumers to the products

  4. All of the above

    Correct answer

Why this is the answer

Stable demand despite price increases can result from strong pricing power, customer loyalty, or dependency on the product. These factors individually or together support sustained demand.

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