Business to Business relations is the primary focus of Chapter 6. Throughout the chapter, Professor Featherman discusses the various forms of business to business relations such as B2B e-commerce, B2B markets, and purchase/selling techniques frequently used between partnering organiztions. In Business to Business markets, companies supply one another with essential parts, ingredients, and materials needed to run their organization. Often times, these Business to Business relations reflect the concept of inelastic demand. Featherman states that inelastic demand occurs when there is a "demand in which changes in price have little or no effect on the amount demanded". Many organizations simply cannot bounce around from one supplier to the next, thus creating inelastic demand for many business to business relations in which organizations are willing to pay for the product being supplied despite flucuations in price. The graph above depicts an inelastic demand. With quantity demanded on the X axis and price on the Y axis, it is easy to see that reasonable variations in price have little effect on the actual quantity demanded.
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