The CBS Network Offers Consumers Hundreds of Hours of Television

question 40

Multiple Choice

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

• A) Discrepancy of assortment
• B) Discrepancy of quality
• C) Discrepancy of image
• D) Discrepancy of variety
• E) Discrepancy of quantity

---

Definitions:

Substitution

The economic concept where consumers replace more expensive items with less costly alternatives, or firms replace inputs with more economical options.

Convex Preferences

An economic assumption that consumers prefer combinations or mixes of goods over singular extremes, depicting their choices lead to higher satisfaction.

Convex Preferences

A concept in consumer theory indicating that a consumer prefers average bundles of goods over extreme bundles, leading to smoother, convex indifference curves.

Strictly Convex

A term often used in mathematics and economics to describe a curve or function that curves away from the origin more sharply than a straight line, indicating increasing marginal effects.