In Which of the Following Markets Are Information Problems Likely

question 108

Multiple Choice

In which of the following markets are information problems likely to be most serious?

• A) used cars
• B) groceries
• C) toothpaste
• D) compact discs

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Definitions:

Absolute Threshold

The absolute threshold refers to the minimum intensity of a stimulus that one can detect 50% of the time.

Difference Threshold

The minimum difference in stimulation needed to detect a change or difference between two stimuli.

Just-noticeable Difference

The smallest change in intensity of a stimulus that can be detected.

Absolute Threshold

The minimum intensity of a stimulus at which it can be detected by an individual at least 50% of the time.