When Consumers Make Purchase Decisions About Products That Are Expensive

question 12

Multiple Choice

When consumers make purchase decisions about products that are expensive, risky and/or important to them, consumers are said to be making which type of decision?

• A) high engagement
• B) high complexity
• C) high attachment
• D) high involvement
• E) high participation

---

Definitions:

Deadweight Loss

The drop in economic productivity happening when the optimal free market balance for a good or service isn't met.

Price Ceiling

A price ceiling is a government-imposed limit on how high the price of a good or service can be charged in the market, usually set below the equilibrium price to ensure affordability of essential goods.

Monopolist

An entity that is the sole provider of a particular good or service, giving it the ability to control market prices and output levels.

Price Ceiling

A legal maximum price that can be charged for a good or service, aiming to prevent prices from rising too high.