Recall the Application about the relationship between consumer search and income to answer the following question(s).
-Recall the Application.What can you conclude from a recent study that explores the relationship between consumer search and income?
A) The higher the income, the higher is the opportunity cost of search.
B) The higher the income, the lower is the opportunity cost of search.
C) The income and opportunity cost are not related when searching for a particular product.
D) The recent study was inconclusive.

Question

Quizplus · Accepted Answer

The higher the income, the higher is the opportunity cost of search. This is because individuals with higher incomes typically value their time more, and thus, the cost of spending time searching for products or services is greater for them compared to individuals with lower incomes.

Recall the Application About the Relationship Between Consumer Search and Income