Multiple Choice
If last year the average price for an airline ticket was 450, and a consumer was willing to pay 600 for a ticket, what was the consumer surplus for this purchase?
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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
Retail media ads tend to be very effective because they target customers in the process of making a:
A
market analysis
B
purchase decision
C
budget allocation
D
brand evaluation
Verified step by step guidance1
Understand the context of retail media ads: these ads are designed to reach customers at a specific point in their buying journey.
Identify the key moment when customers are most likely to be influenced by retail media ads, which is when they are actively considering buying a product.
Recognize that this moment is called the 'purchase decision,' where customers decide whether or not to buy a product.
Compare the other options: 'market analysis' refers to studying the market, 'budget allocation' is about distributing funds, and 'brand evaluation' involves assessing brand value—none of which directly relate to the timing of retail media ads.
Conclude that retail media ads are effective because they target customers during their purchase decision process.
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