Which of the Following Would Be the Best Example of Consumer

question 161

Multiple Choice

Which of the following would be the best example of consumer surplus?

• A) Jane does not get cell-phone service because she feels that it is worth less than the $30 a month fee.
• B) Sam pays $8 for a haircut that is worth $10 to him.
• C) Ralph buys a house for $104,000, the maximum amount that he would be willing to pay for it.
• D) Sue purchases a book for $20 and uses a credit card to pay for it.

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Definitions:

Immediacy of Authority

Immediacy of authority refers to the perceived closeness, in terms of power or spatial distance, between an authority figure and an individual, influencing obedience levels.

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Asch's Study

A series of experiments by Solomon Asch that demonstrated the power of conformity in groups, showing that individuals may agree with group consensus even when it contradicts their own senses.

Group Norm

Shared standards, rules, or expectations that influence behavior within a group of people.