What Are Group Norms? Describe Three Functions of Group Norms

question 18

Essay

What are group norms? Describe three functions of group norms.Illustrate the three functions of group norms using examples from a group to which you belong.

---

Definitions:

Price

The amount of money required to purchase a good or service; it acts as a signal between sellers and buyers.

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.

Willingness to Pay

The maximum amount an individual is prepared to spend to acquire a good or service or avoid something undesirable.