A Consumer's Price Sensitivity Will Decrease As

question 13

Multiple Choice

A consumer's price sensitivity will decrease as:

• A)the perceived number of substitutes increase.
• B)switching costs increase.
• C)the shared costs for the expenditure decreases.
• D)the perceived unique value of the service decreases.
• E)the customer's ability to build an inventory increases.

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Definitions:

Innovation

The process of creating new products, processes, or ideas that bring value to society, businesses, or individuals.

Central Planning

An economic system where the government makes all decisions on the production and allocation of goods and services.

Economic Profitability

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success and viability of a venture.

Resource Allocation

The process of assigning available resources in the most efficient way to meet the objectives of an organization or economy.