Many Consumers Correlate Price with Quality,thinking That the Higher the Price,the

question 147

Multiple Choice

Many consumers correlate price with quality,thinking that the higher the price,the better the quality.For these consumers,this is a:

• A) compensatory decision rule.
• B) noncompensatory decision rule.
• C) decision heuristic.
• D) social factor.
• E) temporal factor.

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Definitions:

Tax Revenue

The financial returns that governments earn from taxes.

Tax

An essential monetary obligation or different kind of dues enforced on a taxpayer by a governmental institution for the purpose of funding state expenses and a variety of public outgoings.

Good

In economics, a good is a material that satisfies human wants and provides utility, for example, to a consumer making a purchase of a satisfying product.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded, leading to market balance.