Consumers are more likely to perceive the value of a product to be less than its price tag says if the product's
A) price is set too high in their minds.
B) manufacturer gains very little profit from the product.
C) demand is inelastic.
D) demand and supply attain the state of price equilibrium.

Question

Quizplus · Accepted Answer

When consumers perceive a product's price to be too high, they may feel that the value they receive is less than the cost, leading to a perception that the product is overpriced.

Consumers Are More Likely to Perceive the Value of a Product