Figure 4.5.2
-Refer to Figure 4.5.2 above. When the snob effect is at work, a decrease in price causes:

Question

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When the snob effect is at work, a decrease in price causes a move from A to C, and then to B. This is because as the price decreases, the product becomes more accessible to a wider range of consumers, reducing its exclusivity and appeal to those who value uniqueness and status. As a result, some consumers at point A switch to a different, more exclusive product (point C), while others who previously couldn't afford it switch to the original product at a lower price (point B).

Figure 4.5.2 -Refer to Figure 4.5.2 Above. When the Snob Effect Is