Consumers exhibit less price sensitivity for all of the following reasons EXCEPT which one?
A) when the product they are buying is unique
B) when substitutes are hard to find
C) when the product in question is in high demand
D) when the total expenditure for a product is high relative to their income

Question

Quizplus · Accepted Answer

Consumers are more price sensitive when the total expenditure for a product is high relative to their income. This means that if the product is more expensive and not essential, consumers will be more likely to choose a cheaper alternative or forego the purchase altogether. Therefore, consumers exhibit less price sensitivity when the total expenditure for a product is low relative to their income. The other options (A, B, and C) indicate situations in which consumers may be more willing to pay a higher price for a product, which increases their price insensitivity.

Consumers Exhibit Less Price Sensitivity for All of the Following