Buyers Are Less Price Sensitive in All of the Following

question 120

Multiple Choice

Buyers are less price sensitive in all of the following situations EXCEPT _ .

• A)when the product is exclusive
• B)when the total expenditure for a product is high relative to their income
• C)when the product they are buying is unique
• D)when the product they are buying is high in quality
• E)when substitute products are hard to find

---

Definitions:

Debt

An amount of money borrowed by one party from another, under the agreement that it will be repaid, often with interest.

Common Stock

A type of security signifying ownership in a corporation and entitling the holder to a share of the company's profits, essentially a mode of holding equity in the corporation.

Dividend Growth Model

A method used to value a company's stock by using predicted dividends and factoring in the growth rate of the dividends.

Required Rate of Return

The lowest yearly percent gain anticipated by an investor from investing in a specific asset.