Which of the following is used to explain why a consumer's willingness to buy a mobile increases as the number of other people who own and use mobiles increases?
A)Network externalities
B)Market failure
C)Diminishing marginal utility
D)The income effect of a price change

Question

Quizplus · Accepted Answer

Network externalities, also known as "network effects," refer to the idea that the value of a good or service increases as more people use it. In the case of mobile phones, as more people own and use them, the value of the phone increases for others, making them more willing to buy one as well.

Which of the Following Is Used to Explain Why a Consumer's