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. This situation involves the consumer 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

Consumers compare Splenda to real sugar, using their knowledge of sugar as a reference point to evaluate the value of Splenda, despite its higher price.

In the Purchase of the Sugar Substitute Splenda, You May