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

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Definitions:

Abraham Maslow

Abraham Maslow was a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology proposing five tiers of human needs, from basic survival needs like food and shelter to higher levels of needs such as self-actualization.

Hierarchy

Hierarchy is a system of organizing people or things according to levels of importance or authority.

Basic Amenities

Essential facilities and services provided to make a living or working environment comfortable and functional, such as clean water, electricity, and sanitation.

Goal Theory

A framework that studies how setting goals influences behavior and performance.