There are two local bars and I always buy the same beer at both bars. At the first bar, the music is bad and the bartender is rude. At the second bar, the music is wonderful, there are lots of friendly people, and I always enjoy myself more than when I go to the first bar. An example of context adding value to a good is:
A) I pay a dollar more for the beer at the second bar than I pay at the first bar.
B) I pay $\$ 10$ for a beer at the second bar.
C) I never go to the first bar.
D) I stop talking to the bartender at the first bar.

Question

Quizplus · Accepted Answer

The context of enjoying the atmosphere and the social environment at the second bar adds value to the beer, making the consumer willing to pay more for the same product.

There Are Two Local Bars and I Always Buy the Same