Consumers are more likely to be price sensitive when _____.
A) it is not easy to compare the prices of different goods
B) the marginal cost of production is zero
C) the price of the good is very low
D) they have many substitute ways of meeting a need
E) someone else pays the bill or shares the cost

Question

Quizplus · Accepted Answer

When consumers have many substitute ways of meeting a need, they are more likely to be price sensitive as they can easily switch to another product if the price of their preferred product increases. This makes it important for companies to offer competitive prices in order to retain their customers.

Consumers Are More Likely to Be Price Sensitive When _____