Multiple Choice
Which two types of consumer purchases would typically involve an extended decision-making process?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Which of the following is a likely dependent variable a market researcher may use in a marketing experiment related to consumer surplus and willingness to pay?
A
The number of competitors in the market
B
The maximum price a consumer is willing to pay for a product
C
The production cost of the product
D
The advertising budget allocated for the product
Verified step by step guidance1
Understand the concept of a dependent variable: it is the outcome or the variable that the researcher measures or observes in an experiment, which depends on other factors (independent variables).
Identify the focus of the experiment: since the experiment relates to consumer surplus and willingness to pay, the dependent variable should reflect consumer behavior or valuation.
Analyze each option to see if it measures consumer valuation or behavior:
- The number of competitors in the market is an external market condition, not a consumer response, so it is unlikely to be the dependent variable.
- The maximum price a consumer is willing to pay directly measures consumer valuation and willingness to pay, making it a suitable dependent variable.
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