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A Consumer Went to a Store and the Price That

question 6

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A consumer went to a store and the price that rang up when she was checking out was higher than the price that was advertised on the shelf. This is the third time that this happened to this consumer in this store. According to attribution theory, which element will cause her to likely expect this to happen again?


Definitions:

Long-Run Aggregate Supply

The total output of goods and services that an economy can produce when it is using all of its resources efficiently and at full employment.

Vertical

In economics, this term typically refers to a market structure where companies provide different, but related, products or services at various stages of production.

Money Supply

The total financial resources in an economy at a particular time, made up of cash, coins, and the holdings in checking and savings accounts.

Inflation

An increase in the average cost of goods and services, resulting in a drop in the value of purchasing power.

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