Consumers Have More Difficulty Evaluating Services Than They Do Products;

question 141

Multiple Choice

Consumers have more difficulty evaluating services than they do products; the difficulty results from the:

• A)intangibility of services.
• B)incongruity of services.
• C)inseparability of services from consumers.
• D)inflexibility of services.

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Definitions:

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, achieving market balance.

Buyers

Individuals or entities that purchase goods or services for consumption or investment.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers in a marketplace.

Input Price

The cost associated with purchasing the raw materials, labor, and other resources required to produce goods and services.