When the Insurance Industry Recently Announced a "Hefty" Price Increase

question 36

Multiple Choice

When the insurance industry recently announced a "hefty" price increase in the cost of term life insurance, sales of this type of insurance did not decrease. This is an example of what concept in understanding consumer price sensitivity?

• A) Insurance demand is unitary.
• B) Consumers are less price sensitive to products bought infrequently.
• C) Insurance sales reps can "really sell" their products.
• D) Customers are most sensitive to products that are bought frequently.
• E) Customers are less sensitive to disposable products.

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Definitions:

Shoulder

A part of the body where the arm is joined to the torso, consisting of several joints and muscles that allow for a wide range of movement.

Sternal

Relating to the sternum, which is the long, flat bone located in the center of the chest, connecting to the ribs via cartilage and helping to protect the heart, lungs, and major vessels.

Serous Membranes

are thin layers of tissue that cover internal organs and body cavities, secreting a fluid that lubricates and reduces friction.

Visceral Layer

The layer of a membrane that is in direct contact with organs, wrapping them in various body cavities.