Which statement gives an example of a price-sensitive good?

A) Cotton t-shirts cost more because a drought affected cotton production.

B) The price of chocolate has gone up and sales are down.

C) More people own cheaper cell phones than upgraded, expensive ones.

D) A used car is worth more than a brand new one.

Question

Social Studies

Nash Barton

17 June, 22:35

Which statement gives an example of a price-sensitive good?

A) Cotton t-shirts cost more because a drought affected cotton production.

B) The price of chocolate has gone up and sales are down.

C) More people own cheaper cell phones than upgraded, expensive ones.

D) A used car is worth more than a brand new one.

+3

Answers (1)

Know the Answer?

Alonzo Long · Answer 1

The correct answer is B "The price of chocolate has gone up and sales are down". Price sensitivity is the effect the price of a product causes in its demand towards consumers. It is also called price elasticity of demand. A simple example is when the price of a good goes up, its sales go down. It means the consumers are not willing to pay more for that product. This is the case of option B. The price of chocolate increased and made the sales decrease.