Asked by Cooper Lumsden on Jul 03, 2024
Verified
For which of the following is demand likely to be least sensitive to price increases?
A) spring break vacations
B) a specific brand of cereal
C) prescription drugs
D) theater tickets
E) restaurant meals
Price Increases
The act of raising the cost of products or services, often in response to increased production costs or to leverage market demand.
Prescription Drugs
Medicines that can only be sold to consumers possessing a valid prescription from a healthcare professional.
Spring Break Vacations
Holiday periods typically occurring in early spring where students and families often travel for leisure and relaxation, commonly to warm or tropical destinations.
- Acknowledge the importance of understanding price sensitivity in influencing the pricing framework for goods and services.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
C
Explanation :
Prescription drugs are often essential for people's health and wellbeing, and therefore demand is less likely to be sensitive to price increases. People may not have the option to switch to a cheaper alternative and may be willing to pay a higher price for the medication they need.
Learning Objectives
- Acknowledge the importance of understanding price sensitivity in influencing the pricing framework for goods and services.