If consumers were largely indifferent to a $0.5 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

A price indifference band is the range of prices within which customers are relatively indifferent to small price changes. A $0.5 increase in the price of a gallon of milk falls within this range, indicating that customers are not highly sensitive to this price change.

If Consumers Were Largely Indifferent to a $0