Coupons in the Sunday newspaper circular segment the market by
A) willingness to pay, because each buyer will pay the maximum price.
B) frequency of a purchase, because people who go to the store more often use more coupons.
C) utility, because those with a higher marginal utility use more coupons.
D) elasticity of demand, because the more price-sensitive buyers will use coupons.

Question

Quizplus · Accepted Answer

Coupons target consumers who are more sensitive to price changes, known as having a higher elasticity of demand. These consumers are more likely to use coupons to save money, as they respond more significantly to price discounts.

Coupons in the Sunday Newspaper Circular Segment the Market by