Consumers Are More Likely to Perceive the Value of a Product

question 53

Multiple Choice

Consumers are more likely to perceive the value of a product to be less than its cost if:

• A)​in consumers' minds, the product's price is set too high.
• B)the product's manufacturer gains very little profit from the product.
• C)the product has an inelastic demand.
• D)​the product's demand and supply attain the state of price equilibrium.

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Definitions:

Utility

The complete fulfillment experienced when consuming a product or service.

Marginal Utility

The extra pleasure a customer receives from consuming an additional unit of a product or service.

Total Utility

The total satisfaction received by consuming a particular amount of goods or services.