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Scenario 7.2 Use the Following to Answer the Questions

question 91

Multiple Choice

Scenario 7.2
Use the following to answer the questions.
Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans.Toyota noticed that the majority of its customers were families with 3 or more children,and so they developed commercials that featured larger families.They also produced commercials that featured Hispanic-looking actors and for some markets,in Spanish.Alicia Desario and her husband were currently shopping for a van for their family.As Alicia listened to an advertisement on the television about the Nissan Quest,she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg.She recalled an earlier ad for the Toyota Sienna,that also cost about $27,000,but had gas mileage of about 21 mpg.She also liked the way the family was portrayed in the Toyota ad,showing the children in the back seats having plenty of room,watching the DVD players,and having their own sound controls.When she spoke to Carlos,her husband,about how much she liked the Toyota van,he replied that it had too low of gas mileage at only 16 mpg.Since Alicia didn't agree with that number,he produced a magazine ad that supported his claim of the 16 mpg for the Toyota.Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan.
-Refer to Scenario 7.2.The fact that Alicia had remembered the gas mileage of the Toyota Sienna incorrectly is most likely an example of

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Endangered Elephants

Elephant species that are at risk of extinction due to factors such as habitat loss, poaching, and human-wildlife conflict.

Private Goods

Goods that are excludable and rival in consumption, meaning one person's consumption prevents others from enjoying it.

Common Resource

A resource like air or water that is available to all but susceptible to overuse and depletion because it is not excludable.

Negative Externalities

These are unintended and adverse effects of a product or economic activity that impact third parties who are not directly involved in the activity.