Consumers are particularly price-responsive when:a. it is difficult to substitute across suppliers and prices are high. b. they have little time to change their consumption patterns and prices are low. c. there are many substitute goods available for a product, and they have a long time horizon to adjust their consumption. d. there are few substitute goods available for a product, and they have a short time horizon to adjust their consumption.

Question

Business

Roderick Hanson

18 December, 08:15

Consumers are particularly price-responsive when:a. it is difficult to substitute across suppliers and prices are high. b. they have little time to change their consumption patterns and prices are low. c. there are many substitute goods available for a product, and they have a long time horizon to adjust their consumption. d. there are few substitute goods available for a product, and they have a short time horizon to adjust their consumption.

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Answers (1)

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Annalise Figueroa · Answer 1

The correct answer is the option C: there are many substitute goods available for a product, and they have a long time horizon to adjust their consumption.

Explanation:

To begin with, the concept known as ''price-responsive'' in the marketing field and in the business world refers to the ability by the consumers to adjust their consumption behavior regarding the prices that are being charged by the company in order to control the use of the good itself and therefore to avoid paying high prices. Moreover, it is understood that in this theory scheme the consumers are adaptative to the services price changes that the company tends to do.