Which theory helps explain why scarcity works?
A) habituation
B) psychological reactance
C) cognitive dissonance
D) attribution theory
E) theory of reasoned action

Question

Which theory helps explain why scarcity works? 
A) habituation 
B) psychological reactance 
C) cognitive dissonance 
D) attribution theory 
E) theory of reasoned action

Quizplus · Accepted Answer

Psychological reactance theory explains why people may desire something more when they perceive it to be scarce or limited. When there is a perceived threat to one's freedom or choices (such as only a limited number of a product being available), people may have a stronger desire to obtain that item. This can lead to increased sales and demand for the product.

Which Theory Helps Explain Why Scarcity Works