During a Radio Ad,listeners Are Repeatedly Asked,"What Would Life Be

question 168

Multiple Choice

During a radio ad,listeners are repeatedly asked,"What would life be without Fletchers Ice Cream?" At the end of the ad,the same question is cleverly interrupted immediately after the word "without." At that point,many listeners mentally respond with the words "Fletchers Ice Cream." Their response best illustrates the principle of

• A) closure.
• B) proximity.
• C) interposition.
• D) perceptual adaptation.

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Definitions:

Producer Surplus

The disparity between the amount sellers are ready to accept for a good or service and the price they actually receive.

Supply-and-Demand

A fundamental economic model that describes how the price and quantity of goods and services are determined in a market based on the amount available (supply) and the desire to purchase (demand).

Equilibrium Output

The level of output where the quantity of goods or services producers are willing to supply equals the quantity consumers are willing to buy, resulting in market equilibrium.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and it has little control over the market price.