Economists would refer to the increase in product sales because of celebrity endorsements as being the result of
A) network externalities.
B) the endowment effect.
C) social influence.
D) the ultimatum game.

Question

Quizplus · Accepted Answer

The increase in product sales because of celebrity endorsements is related to social influence. Consumers may be more likely to purchase a product if a celebrity they admire is also associated with it. This is an example of how social factors can impact consumer behavior. Network externalities refer to the value a product or service provides based on the number of other people using it, the endowment effect refers to people valuing something more once they own it, and the ultimatum game is a behavioral economic experiment used to study decision making. None of these accurately describe the relationship between celebrity endorsements and product sales.

Economists Would Refer to the Increase in Product Sales Because