In the context of consumer surplus and willingness to pay, which retail channel typically accounts for the highest percentage of retail sales in the United States?

• A. Television shopping networks
• B. Direct-to-consumer mail order
• C. Online e-commerce platforms
• D. Brick-and-mortar stores

Answer: (D)

Verified step by step guidance

1. Understand the concept of consumer surplus, which is the difference between what consumers are willing to pay for a good or service and what they actually pay.
2. Recognize that willingness to pay varies across different retail channels due to factors like convenience, product variety, and shopping experience.
3. Identify the main retail channels listed: television shopping networks, direct-to-consumer mail order, online e-commerce platforms, and brick-and-mortar stores.
4. Recall or research data on retail sales distribution in the United States, noting that brick-and-mortar stores have historically accounted for the largest share of total retail sales.
5. Conclude that because brick-and-mortar stores dominate retail sales volume, they typically account for the highest percentage of retail sales compared to the other channels listed.