In the purchase of the sugar substitute Splenda, you may compare it to something you know about like real sugar. Although Splenda is more expensive than sugar, it is purchased by many consumers because it sweetens with no calories. Here, the consumer is considering
A) a marginal analysis.
B) a profit equation.
C) a break-even analysis.
D) price elasticity of demand.
E) a reference value.

Question

Quizplus · Accepted Answer

The consumer is comparing Splenda to real sugar, which is a known product, to assess its value. This comparison is known as using a reference value.

In the Purchase of the Sugar Substitute Splenda, You May