As products become more differentiated:
A. consumers are less willing to switch in response to price changes and competition becomes more intense.
B. consumers are more willing to switch in response to price changes and competition becomes more intense.
C. consumers are less willing to switch in response to price changes and competition becomes less intense.
D. consumers are more willing to switch in response to price changes and competition becomes less intense.
C. consumers are less willing to switch in response to price changes and competition becomes less intense.
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The equilibrium price for a British pound is $1.60. At a price of $1.75 per British pound, there would be excess __________ the dollar and the dollar would __________
A) supply of; appreciate B) supply of; depreciate C) demand for; appreciate D) demand for; depreciate
What is one reason for the high interest rates for home loans offered to those with low credit ratings?
A) Predatory lending practices B) Those with lower credit ratings faced a restricted supply of loans, ceteris paribus. C) Those with lower credit ratings typically demand greater loans, ceteris paribus. D) Government regulation
You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time,
a. you should price the warranty at less than 2% of the product price b. you should price the warranty at exactly 2% of the product price c. you should price the warranty at more than 2% of the product price d. Cannot tell from this information
The price elasticity of demand is equal to the slope of the demand curve
a. True b. False