Examlex

Solved

Susan Has an Aversion for Zoco,a Fast Food Chain

question 101

Multiple Choice

Susan has an aversion for Zoco,a fast food chain.When a health journal reports on an ingredient used by Zoco as having a potential health risk,Susan's aversion is strengthened.Now,Susan advises all her friends and relatives to avoid Zoco,even though other fast food chains use the same ingredient.Which of the following offers the most likely explanation for Susan's reaction to the journal report?


Definitions:

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their total utility given the prices of goods and services.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with cheaper alternatives.

Canning Jars

Containers typically made of glass used for preserving food through the process of canning, which involves sterilization and sealing.

Consumer Equilibrium

The point at which the quantity of goods consumed by a consumer maximizes their utility, given their budget constraints.

Related Questions