If the demand for a product is inelastic, which of these statements must be true? a)people will not buy any of the product when the price goes up. b)a price increase does not have a significant impact on buying habits. c)customers are sensitive to the price of the product. d)there are very few satisfactory substitutes for the product.

Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?