There Are Several Reasons a Consumer Would Be Reluctant to Adopt

question 63

Multiple Choice

There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a risk barrier, which occurs when

• A) there is no incentive to change.
• B) there are physical, economic, or social fears.
• C) there are cultural differences.
• D) the financial commitment is too great.
• E) the product is not consistent with existing habits.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a specific price.

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, typically set below the equilibrium price.

Shortage

A situation in which the demand for a product or service exceeds the supply available at a particular price.