Multiple Choice
Advertising, fashion trends, and new product introductions serve to:
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which term refers to characteristics of a product that make it superior to competitive substitutes?
A
Consumer surplus
B
Marginal utility
C
Points of differentiation
D
Price elasticity
Verified step by step guidance1
Understand the question is asking for a term that describes features or attributes of a product that make it better or distinct compared to competing products.
Recall that 'Consumer surplus' refers to the difference between what consumers are willing to pay and what they actually pay, not product characteristics.
Recognize that 'Marginal utility' measures the additional satisfaction from consuming one more unit of a good, which is about consumer satisfaction, not product features.
Identify that 'Price elasticity' measures how quantity demanded responds to price changes, which relates to demand sensitivity, not product superiority.
Conclude that 'Points of differentiation' is the term that specifically refers to unique characteristics making a product superior or distinct from competitors.
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