Consumers are more likely to perceive the value of a product to be less than its cost if:
A)the product's price is set too high in their minds.
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

Quizplus · Accepted Answer

When consumers perceive a product's price to be set too high in their minds, they are more likely to believe that the value of the product is less than the cost. This is because they are paying more than they believe the product is worth.

Consumers Are More Likely to Perceive the Value of a Product