Consumers often purchase products that, afterward, they regret purchasing. This can be explained by
A) consumers trying products to determine if their consumer surplus increases.
B) consumers trying products to determine if firm advertising is honest.
C) consumers trying to minimize expenditures.
D) consumers trying to maximize choice.
A
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Which of the following is true? a. Price leadership is a form of explicit collusion
b. Price leadership is more likely when there are a substantial number of roughly equally sized firms in oligopoly. c. A price leader is most likely to be a dominant firm in an industry. d. None of the above is true.
If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that
a. the total expenditures (including those made by the third party) on the good will decline. b. the demand for the good will decrease. c. consumers will have a stronger incentive to economize on their use of the good. d. suppliers will have less incentive to provide the good at low prices.
When externalities are present in a market, social surplus is maximized.
a. true b. false
When producers anticipate that the price of their product will increase in the future
A. the supply curve will shift to the left. B. the supply curve will shift to the right. C. they will immediately lobby Congress to adjust prices now. D. the current production will move along on the supply curve.