Consider a good whose consumption takes place publicly.Your decision to buy that good depends
A)both on the characteristics of the product and on how many other people are buying the good.
B)only on the characteristics of the good.
C)only on how many other people buy the good.
D)only on the price of the good.

Question

Quizplus · Accepted Answer

In the case of a good whose consumption takes place publicly, the decision to buy the good depends not only on its characteristics but also on how many other people are buying it. This is because the value or utility derived from consuming the good increases with the number of other people consuming it. For example, attending a popular concert or visiting a crowded tourist attraction can be more enjoyable because of the presence of other people. Therefore, the best choice is A) because it acknowledges the importance of both the product's characteristics and the social context in shaping the consumer's decision to buy.

Consider a Good Whose Consumption Takes Place Publicly