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

Question

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

Quizplus · Accepted Answer

If consumers feel that the price of a product is too high, they may perceive it to be of lesser value than its cost. This can be due to various factors such as competition, previous pricing, and their personal perception of the product's value.

Consumers Are More Likely to Perceive the Value of a Product