If consumers find that there are substantial transactions costs to purchasing a product, then:
A) overall consumer demand is greater at each price.
B) overall consumer demand is the same at each price.
C) overall consumer demand is less at each price.
D) equilibrium price and quantity both fall.

Question

Quizplus · Accepted Answer

If there are substantial transactions costs associated with purchasing a product, it becomes more expensive to acquire the product, which can deter consumers from purchasing it at every price level. Therefore, overall consumer demand would be less at each price level.

If Consumers Find That There Are Substantial Transactions Costs to Purchasing