When the price of a gallon of milk increases by $0.50, consumers notice this increase immediately. This is an example of what concept in the understanding of consumer price sensitivity.
A) Customers often miss the just noticeable difference.
B) Customers are less sensitive to disposable products.
C) Customers are most sensitive to products that are bought frequently.
D) Customers are most sensitive to food products.
E) Customers are most sensitive to grocery products.

Question

Quizplus · Accepted Answer

This phenomenon is an illustration of the fact that consumers are most sensitive to products that are bought frequently, such as milk. Even small changes in price can have a noticeable impact on their purchasing decisions.

When the Price of a Gallon of Milk Increases by $0.50