Which of the following economically explains why consumers are willing to pay less for a consultation than for a surgery?
A)Consumers receive more value from a consultation than a surgery.
B)Consumers receive less value from a consultation than a surgery.
C)Consumers are unable to determine the value from either service.
D)Consumers are unaware of the prices being charged for each of these services.

Question

Quizplus · Accepted Answer

Consumers are willing to pay less for a consultation than for a surgery because they perceive the surgery to be more valuable and important than a consultation. A consultation is typically seen as a preliminary step before a surgical procedure, so consumers may view it as less necessary or urgent, and therefore less valuable.

Which of the Following Economically Explains Why Consumers Are Willing