Mitch and Jill were visiting the Eiffel Tower when there was a downpour. They were willing to pay 25 euros for a poorly made umbrella that would usually sell for 10 euros or less. This illustrates the fact that:
A) The relationship between price and potential demand can be driven by many factors.
B) That cost plays no role in pricing decisions.
C) Consumers act in irrational manner.
D) Travelers do not understand exchange rates.

Question

Quizplus · Accepted Answer

The willingness to pay a higher price for an umbrella during a downpour illustrates how demand can increase due to situational factors, affecting the price consumers are willing to pay.

Mitch and Jill Were Visiting the Eiffel Tower When There