Question

Jane's, Peter's, Joshua's, and Austin's monthly incomes are $600, $550, $650, and $700, respectively. Since they live together, each of them is obliged to pay $100 for household expenses every month. In this scenario, who among the following is likely to be the most price sensitive among the four?

a. Jane
b. Austin
c. Joshua
d. Peter

Answer 1

d. Peter

Step-by-step explanation:

Price sensitivity: is the change in demand based on a price change. Because, after paying the rent Peter has the lowest income their price sensitivity will be higher.

His demand will change when the cost of a product or service change as the price occupies an important role in his purchasing criteria.

It will be willing to sacrifice quality in order to save price.