The choice of a good is path dependent when
A)consumers get utility from consuming goods that others are consuming, such as restaurants.
B)the first technology that was adopted has an advantage over a better technology that came later.
C)people who move location follow the path of people who moved before them.
D)it can only be used in one way.

Question

Quizplus · Accepted Answer

Path dependence occurs when the initial choice of a technology or good influences future choices, even if a better option becomes available later. This is often due to the advantages gained by the first technology adopted, such as network effects or established infrastructure.

The Choice of a Good Is Path Dependent When