In the purchase of the sugar substitute Splenda,you may compare it to something you know about like real sugar.Although Splenda is more expensive than sugar,it is purchased by many consumers because it contains no calories.This situation involves the consumer considering
A)a marginal analysis.
B)a profit equation.
C)a break-even analysis.
D)price elasticity of demand.
E)a reference value.

Question

Quizplus · Accepted Answer

Value involves the judgment by a consumer of the worth and desirability of a product or service relative to substitutes that satisfy the same need.In this instance a reference value emerges,which involves comparing the costs and benefits of substitute items.

In the Purchase of the Sugar Substitute Splenda,you May Compare