Competitive price increases are more likely to be followed by a company when _______.
A)price sensitive customers are present
B)price insensitive customers are present
C)falling costs levels occur
D)excess supply exists

Question

Quizplus · Accepted Answer

Competitive price increases are more likely to be followed by a company when price insensitive customers are present because these customers are less likely to reduce their demand in response to higher prices, making it a safer environment for a company to raise prices without losing significant sales volume.

Competitive Price Increases Are More Likely to Be Followed by a Company