Wagenlucht Ice Cream Company Is Always Trying to Create New

question 82

Multiple Choice

Wagenlucht Ice Cream Company is always trying to create new flavors of ice cream. They are market testing three kinds to find out which one has the best chance of becoming popular. They give small samples of each to 40 people at a grocery store. 8 ice cream tasters preferred the strawberry Cream, 24 preferred Choco-Nuts, and 8 loved the Orange Mint. Construct a Pareto chart to represent these preferences. Choose the vertical scale so that the relative frequencies are represented.

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Definitions:

Consumer Surplus

is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.

Scented Candles

Candles infused with fragrance or essential oils that are used for aromatherapy or to create a pleasant atmosphere.

Marginal Utility

The added satisfaction or utility a consumer gains from consuming an additional unit of a good or service.

Consumer Surplus

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