Consumer Panel Preferences for Three Proposed Fast Food Restaurants Are

question 109

Essay

Consumer panel preferences for three proposed fast food restaurants are as follows: $$\begin{array} { | c | c | c | } \hline \text { Restaurant } A & \text { Restaurant B } & \text { Restaurant C } \\\hline 48 & 62 & 40 \\\hline\end{array}$$ Using the 0.05 level of significance, test to see if there is a preference among the three restaurants.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive.

Producer Surplus

The difference between what producers are willing and able to supply a good for and the price they actually receive, measuring the benefit to producers.

Total Surplus

The total net gain to society from creating and consuming a product or service, encompassed by the combination of consumer and producer surplus.

Deadweight Loss

An inefficiency in the economy that results when the market equilibrium for a good or service isn't attained or is unattainable.