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.

---

Definitions:

Flows of Funds

The movements of money between sectors of an economy, showing how funds are used and where they come from.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Balance of Payments

A financial statement that summarizes a country’s transactions with the rest of the world, including imports, exports, and capital flows.

Credit Item

An entry that increases the balance in a bank account or financial statement, signifying an inflow of funds.