ABC Co. sells its computers in Japan at a lower price than in its home market. This dumping happens because demand for ABC’s computers in Japan is ____ because ____ are available from other nations?
Correct answer D. More elastic in Japan; more substitutes are available from other nations
Explanation
A price-discriminating firm charges less where demand is more elastic; buyers in Japan have more substitutes from other countries, so they are more price-sensitive.
Answer checked How we write and check questions
Discussion