The "Paradox of Value," with Respect to Prices and Consumer

question 42

Multiple Choice

The "paradox of value," with respect to prices and consumer purchases, refers to which one of the following?

• A)Prices of commodities are not always proportional to the total satisfaction they give us.
• B)It is impossible to explain the price of a commodity in terms of either demand factors alone or supply factors alone.
• C)It is impossible to explain why people's tastes are what they are, or why tastes vary from one person to the next.
• D)Some consumers tend to value commodities according to their price, even to the point of buying more if the price goes up.
• E)None of the above.

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Definitions:

Substantia Nigra

A region of the brain involved in movement control and reward; it plays a significant role in diseases such as Parkinson's.

Superior Colliculus

A region of the midbrain that plays an important role in visual and auditory reflexes as well as in directing the body's responses to stimuli.

Schizophrenogenic Mother

A now-discredited theory suggesting that a cold and rejecting mother could cause schizophrenia in her child.

Dopamine

A neurotransmitter in the brain that plays a major role in reward-motivated behavior and affects mood, sleep, and learning.