Which of the Following Best Describes Conspicuous Consumption

question 121

Multiple Choice

Which of the following best describes conspicuous consumption?

• A) It refers to the conscious decision to reduce one's material consumption.
• B) It refers to the tendency of a consumer to engage in bargaining behaviors while making purchases.
• C) It refers to the tendency of a consumer to exhibit restraint while making purchase decisions and using resources.
• D) It refers to the tendency of consumers to focus on maximizing what is received from a transaction as compared to what is given.
• E) It refers to a tendency of the wealthy to flaunt their material possessions as a way of displaying their social class.

---

Definitions:

Perfect Competition

a market structure characterized by a large number of small firms, producing identical products, with no single firm able to influence the market price.

Price Takers

Firms or individuals in a market who accept the prevailing prices as they cannot influence them due to their small market share in highly competitive markets.

Identical Products

Products that are the same in every aspect, often referred to in economics to describe goods that have no differentiation in the eyes of consumers.

ATC

ATC can refer to Air Traffic Control, a service provided to ensure the safe, orderly, and expeditious flow of air traffic in the sky and at airports.