Best Grapes is a new winery that wants to attract new customers. The managers of Best Grapes advertise the following, "Best Grapes: The Best Value Wine Money Can Buy." If Best Grapes wine is really of poor value, this is an example of________ a(n)_________ good.

Question

Quizplus · Accepted Answer

This is an example of falsely advertising a credence good. Credence goods are products whose quality cannot be easily assessed by the consumer even after consumption, such as wine. The claim that Best Grapes is the "best value wine money can buy" is a statement about the quality of the wine that the consumer cannot easily verify, making it a credence good. If the wine is actually of poor value, then the advertising is false, making it an example of falsely advertising a credence good.

Best Grapes Is a New Winery That Wants to Attract