Which of the Following Is an Example of a Psychological

question 84

Multiple Choice

Which of the following is an example of a psychological factor relevant to the pricing decisions made for a collectible doll that sells for $299?

• A) What is the discretionary income of prospective buyers of the doll?
• B) Will prospective buyers view the doll's high price as an indicator of high quality?
• C) Are the prospective buyers of the doll geographically clustered?
• D) How many prospective buyers can afford to pay this much for a doll?

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Definitions:

Production and Consumption

The processes of creating goods and services (production) and using them to satisfy needs and desires (consumption).

Holiday Lighting

The practice of installing lights and other decorative lighting during holidays; not inherently economic but can involve significant expenditure and economic activity.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction.

Government Tax

is a compulsory financial charge or levy imposed by a government on individuals or corporations to fund public expenditures.