Which statement would describe a network effect?
A) A Black Friday sale encourages you to buy a new TV.
B) Your workout partner cancels her gym membership, so you end up doing so as well.
C) You use your holiday bonus to pay off bills.
D) A parade comes through town, disrupting traffic all afternoon.

Question

Quizplus · Accepted Answer

Network effects occur when the value of a product or service increases as more people use it. In choice B, your decision to cancel the gym membership is influenced by your workout partner's decision, indicating a network effect within your personal fitness network.

Which Statement Would Describe a Network Effect