Answer:
The correct answer is option A.
Explanation:
Consumer surplus can be defined as the difference between maximum price a consumer is willing to pay and the market price.
A binding floor refers to the price floor that is set below the equilibrium market price.
A price floor below the equilibrium market price will increase the difference between the maximum price the consumer is willing to pay and the price it has top actually pay.
Thus, it increases the consumer surplus.
It's up on Google but the definition is a sum of money granted by the government or a mass public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
When there is a price floor in the market, this usually means that the sellers of the good or service outnumber the buyers.
<h3>What is a price floor?</h3>
- It refers to an amount that the price of a good is not allowed to fall below.
- It is imposed by the government to prevent market failure.
The reason the price might fall so low that a price floor would be implemented is that there are more suppliers in the market than consumers. The price will therefore fall according to the Law of Demand.
In conclusion, option D is correct.
Find out more on the law of demand at brainly.com/question/1078785.
The complete question should be:
What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?
A) the cost of the product
B) the social risk of the product
C) whether the purchase is made after a compensatory or noncompensatory decision process
D) whether the customers hold a very positive or weak attitude toward the product
Answer: whether the customers hold a very positive or weak attitude toward the product
Explanation:
A consumer who buys a product based on inertia is a consumer who buys a product he/she isn't familiar with but is attracted to purchase, therefore no strong link between the consumer and product. While a consumer who purchases a product he/she is loyal to has a very strong connection to that product.