Consumers Are More Likely to Be Price Sensitive When _____

question 175

Multiple Choice

Consumers are more likely to be price sensitive when _____.

• A) it is not easy to compare the prices of different goods
• B) the marginal cost of production is zero
• C) the price of the good is very low
• D) they have many substitute ways of meeting a need
• E) someone else pays the bill or shares the cost

---

Definitions:

Ratification

The official way to confirm something, usually by vote, making it valid or officially approved.

Agency

A legal entity in which one party (the agent) is authorized to act on behalf of another (the principal) in creating legal relationships with third parties.

Effective

The degree to which something is successful in producing a desired or intended result.

Authority

The legal right or power to make decisions, give orders, or act on behalf of another person or entity.