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.
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

Setting a product's price too high can lead consumers to perceive the value of the product to be less than its cost, even if it is a good product. This can lead to a decrease in demand for the product and ultimately result in lower sales.

Consumers Are More Likely to Perceive the Value of a Product