When the demand of a product is inelastic, the firm is in a better position to fix:

Higher Prices

The correct answer is option 1- Higher Prices.

When the demand for a product is inelastic, it means that consumers are less sensitive to changes in price- even if the price increases, the quantity demanded doesn't drop significantly. This gives the firm the ability to raise prices without losing many customers, increase revenue, since the loss in sales volume is minimal compared to the gain from higher prices. Therefore, the firm is in a better position to fix higher Prices.