Which of the Following IS NOT a Situation That Can

question 2

Multiple Choice

Which of the following IS NOT a situation that can cause customers to be less sensitive to price increases?

• A) when customers have few product choices
• B) when products are highly differentiated
• C) when the product is a real or a perceived necessity
• D) when the total expenditure is high
• E) when the product is considered to be "worth it"

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Definitions:

Population Growth

An increase in the number of people that reside in a country, region, or city, which can impact various aspects of society including demand for products and services.

Government Subsidies

Financial assistance provided by the government to organizations, individuals, or industries to support activities deemed beneficial for the public good.

Currency Fluctuation

The variation in the value of one currency relative to another in the global market.

Inflation

A general increase in prices and fall in the purchasing value of money.