A Consumer's Price Sensitivity Will Decrease As

question 9

Multiple Choice

A consumer's price sensitivity will decrease as:

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

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Definitions:

Price Level

Refers to the average of all current prices for goods and services in an economy.

Real Wage

The purchasing power of wages, defined by how much goods and services the wages can buy, adjusting for the level of prices in an economy.

Cyclical Unemployment

This type of unemployment occurs due to economic downturns or recessions, reflecting a lack of demand for goods and services in the market.

Frictional Unemployment

Unemployment that occurs when workers are between jobs or are entering the workforce for the first time; it is often seen as a natural and necessary part of a healthy economy.