Question

The customers of TimeZone watches have high brand loyalty and although the watches are priced at high rates, TimeZone's customers are willing to pay the market price of the product. This is an example of _____.

Answer 1

Answer:

Inelastic demand/ inelasticity of demand

Explanation:

Either way, inelastic demand or inelasticity of demand is simply a situation whereby demand for a certain commodity does not change despite an increase in price and other conditions.

In inelasticity of demand, elasticity is less than one which also translates to little or low response to change in prices.

From the question, it can be seen that irrespetive of whatever the company, Timezone watches; decides, in terms of price and other conditions, the customers will always continue to pay for the watches.

i hope this helps.