If consumers were largely indifferent to a $0.05 increase in the price of a gallon of milk, the price rise is said to fall within customers' ________.
A) price indifference band
B) experience curve
C) arm's-length price
D) learning curve
E) net price index

Question

Quizplus · Accepted Answer

The term "price indifference band" refers to the range of prices within which customers are relatively indifferent to slight price fluctuations. In this scenario, if customers do not significantly change their purchasing behavior in response to a $0.05 increase in the price of milk, it can be assumed that this increase falls within their price indifference band.

If Consumers Were Largely Indifferent to a $0