Question

Coupons in the Sunday newspaper circular segment the market by: willingness to pay, because each buyer will pay the maximum price. frequency of a purchase, because people who go to the store more often use more coupons. utility, because those with a higher marginal utility use more coupons. elasticity of demand, because the more price-sensitive buyers will use coupons.

Answer 1

elasticity of demand, because the more price-sensitive buyers will use coupons

Step-by-step explanation:

Coupons reduce the price of a good or service. Coupons reduce price and this encourages consumers who are price sensitive to increase their demand due to the reduced price.

The elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Consumers that are price sensitive, increase their demand when price falls and reduces it when price increases.

Consumers aren't willing to pay the maximum price. Instead they would want to pay the least price so they can maximise their consumer surplus.

I hope my answer helps you