If a product's sales are not affected when the price of that product is increased, what can be said about the product's pricing?

When the sales of a product remain unchanged despite an increase in price, this indicates that the product has low elasticity. In economic terms, low elasticity means that the quantity demanded for a product is not significantly responsive to price changes. Therefore, consumers are willing to continue purchasing the same quantity of the product even when the price rises, which suggests that the product is considered a necessity or has few substitutes.

Products with low elasticity typically belong to categories where consumers have strong brand loyalty or where the products fulfill essential needs. This characteristic can often enhance profit margins, as businesses can increase prices without losing customers.

Understanding elasticity is crucial for effective pricing strategies in category management, as it informs decisions about how a price change might impact consumer behavior and overall sales performance.