Consumer-consumer rivalry is primarily due to which of the following factors?

• A. Limited availability of goods relative to consumers' willingness to pay
• B. Producers' ability to set prices above equilibrium
• C. Perfect information among all market participants
• D. Government-imposed price floors

Answer: (A)

Verified step by step guidance

1. Understand the concept of consumer-consumer rivalry: It refers to the competition among consumers for limited goods or services in the market.
2. Recognize that rivalry arises when the quantity of goods available is insufficient to satisfy all consumers who want to purchase them at a given price.
3. Analyze each option: Producers' ability to set prices above equilibrium relates to producer behavior, not consumer rivalry; perfect information reduces uncertainty but does not cause rivalry; government-imposed price floors affect prices but are not the primary cause of consumer rivalry.
4. Identify that the key factor causing consumer-consumer rivalry is the limited availability of goods relative to consumers' willingness to pay, which creates competition among consumers to obtain those goods.
5. Conclude that consumer-consumer rivalry is primarily due to scarcity, meaning the limited supply of goods compared to the demand from consumers.