If a Customer Is Reluctant to Try a New Product

question 143

Multiple Choice

If a customer is reluctant to try a new product because she's afraid it might make her ill, the company is most likely facing __________ barrier.

• A)a usage
• B)a risk
• C)a value
• D)an emotional
• E)a psychological

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource.

Market Equilibrium

Market equilibrium is a condition where the quantity of a product supplied is equal to the quantity demanded, leading to a stable market price for the product.

Incidence of a Tax

The incidence of a tax refers to the distribution of the tax's economic burden among different stakeholders, such as consumers and producers.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price.