People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior? O Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils. Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information. Because people generally do not know which products are reviewed by these consumer magazines. None of the above explain this behavior.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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People are more likely to purchase a consumer ratings magazine that reviews new
automobiles before buying a new car than they are to purchase a consumer ratings
magazine that reviews pens and pencils before buying a new pen or pencil. Which of the
following best explains this behavior?
O Because the consumer ratings magazine must have a higher price for the issue
reviewing pens and pencils.
Because the value of the information, in terms of avoiding a mistake on the purchase,
is much higher for an automobile than for a pen or pencil, it is more worthwhile to
gather this information.
Because people generally do not know which products are reviewed by these
consumer magazines.
None of the above explain this behavior.
Transcribed Image Text:People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior? O Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils. Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information. Because people generally do not know which products are reviewed by these consumer magazines. None of the above explain this behavior.
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