Americans Often Equate "Bigger" with "Better," and Prefer Larger Cars

question 120

Multiple Choice

Americans often equate "bigger" with "better," and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce ________ risk in the consumer decision process.

• A)psychological
• B)financial
• C)performance
• D)social
• E)physiological

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Definitions:

Increase in Demand

A situation in which more of a product or service is desired, leading to a shift of the demand curve to the right.

Ceteris Paribus

A phrase in Latin that translates to "with all other conditions remaining the same," employed to examine the impact of a single variable while holding others constant in economic studies.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available and sought after at the market's balance price.