One Explanation for the Increase in Product Sales Because of Celebrity

question 102

Multiple Choice

One explanation for the increase in product sales because of celebrity endorsements is that people seem to receive ________ from goods they believe are popular.

• A) more utility
• B) diminishing utility
• C) greater network externalities
• D) increased path dependency

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Definitions:

Risk Efficiently

The optimal management of risk to maximize returns relative to the level of risk taken.

Flood Insurance

A type of insurance policy that covers property loss and damage due to flooding, often required in high-risk flood areas.

Flood Plains

Flat areas adjacent to rivers and streams that are subject to periodic flooding, often characterized by fertile soil.

Positive Correlation

A relationship between two variables in which both move in the same direction, meaning as one variable increases, the other also increases.