Which of the following is an example of a focal point equilibrium?
A) Purchase of an expensive automobile no one else owns to impress others
B) Avoidance of cheap computers because low price indicates low quality
C) Purchase of hip-hugger pants because pop stars wear them
D) Purchase of fast food because it is cheap and convenient

Question

Quizplus · Accepted Answer

A focal point equilibrium occurs when individuals converge on a particular behavior or choice because it is seen as a standard or trend, often influenced by prominent figures or societal norms. In this case, purchasing hip-hugger pants because pop stars wear them is an example of following a trend set by influential figures.

Which of the Following Is an Example of a Focal