Ask Question
BusinessBusiness
14 May, 03:46

Customers are likely to be less price sensitive when:A. it is easy to compare prices. B. someone else pays the bill. C. the total expenditure is high. D. there are substitutes available. E. their share of the cost is high

+2
Answers (1)
  1. 14 May, 03:53
    0
    Letter E is correct. Their share of the cost is high.

    Explanation:

    Price sensitivity is characterized by consumer behavior in relation to the price of a product or service.

    The degree of price sensitivity can be measured using the price elasticity of demand, which is the study of the percentage change in the amount of demand for a good or service divided by the percentage change in price.

    Some variables may affect consumer behavior, price sensitivity may be higher when there are many substitute products and lower when the consumer values a higher quality good and when its profitability is higher compared to the total cost of the product.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Customers are likely to be less price sensitive when:A. it is easy to compare prices. B. someone else pays the bill. C. the total ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Although President Trump generally has tried to cut budgets, this agency has seen an increase as it must implement his travel bans and enforce immigration law. a. Department of Homeland Security. b. State Department. c. Department of the Interior. d.
Answers (1)
Journalize Period Payroll The payroll register of Chen Engineering Co. indicates $1,980 of social security withheld and $495 of Medicare tax withheld on total salaries of $33,000 for the period. Federal withholding for the period totaled $5,940.
Answers (1)
Nominal GDP is GDP in a given year A. adjusted for inflation. B. valued in the prices of the base year. C. adjusted for anticipated inflation. D. valued in the prices of that year.
Answers (1)
Not adjusting the amounts reported in the financial statements for inflation is an example of which basic assumption or principle of accounting? a. Economic entity. b. Going concern. c. Historical cost. d. Full disclosure.
Answers (1)
If a company fails to record accrued interest revenue at the end of its fiscal year, all else being equal, what are the effects on its net income, total assets, total liabilities, and total stockholders' equity? Net income: A. overstated B.
Answers (1)
New Questions in Business
You observe a portfolio for five years and determine that its average return is 12.5 % and the standard deviation of its returns in 19.5 %. Would a 30% loss next year be outside the 95% confidence interval for this portfolio?
Answers (1)
Pronghorn Company's income statement for the year ended December 31, 2020, contained the following condensed information.
Answers (1)
Why would firms that rely heavily on credit sales find factoring attractive?
Answers (1)
Many cooks view butter and margarine to be substitutes. if the price of butter rises, then in the market for margarine:
Answers (1)
Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20. Costs for the last year were as follows: Direct materials $30,000 Direct labor 38,000 Variable factory overhead 8,000 Fixed factory overhead 40,000 Variable
Answers (1)
Home » Business » Customers are likely to be less price sensitive when:A. it is easy to compare prices. B. someone else pays the bill. C. the total expenditure is high. D. there are substitutes available. E. their share of the cost is high
Sign Up Forgot Password?