MindaX is a beverage manufacturing company. Despite its various promotional efforts, the company finds it difficult to get more customers. Its market analysts later determine that its price is the reason. They are sold at $10 per liter, which makes it difficult for customers to buy this beverage frequently, so, they opt for other lower priced sodas instead. This scenario best illustrates ________.
A)price reduction
B)price increase
C)price allocation
D)price sensitivity

Question

Quizplus · Accepted Answer

This scenario illustrates price sensitivity, where the demand for MindaX's beverages is significantly affected by its price point, leading customers to choose cheaper alternatives.

MindaX Is a Beverage Manufacturing Company