Customers Are Likely to Be More Price Sensitive When

question 157

Multiple Choice

Customers are likely to be more price sensitive when:

• A) the total expenditure is great.
• B) they have to pay the bill themselves.
• C) the end benefit isn't very significant.
• D) they haven't yet spent any money related to the purchase.
• E) All of these alternatives are correct.

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Definitions:

Monopoly Power

The ability of a single supplier in a market to dictate prices and control output, usually due to the lack of competition.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 to prohibit monopolies and foster competition.

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them be determined naturally by market forces.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies by prohibiting certain practices that could lead to anticompetitive behavior.