How can the economic perspective help us understand the behavior of fast-food consumers? Explain several insights it provides about customer behavior
Please provide the best answer for the statement.
Several insights come from the economic perspective as it applies to this example: (1) People choose the shortest line to reduce time cost. (2) Lines often have equal lengths as people shift from longer to shorter lines in an effort to save time. (3) Lines are chosen based on length without much other information—the cost of obtaining more information is not worth the benefit. In this case, imperfect information may lead to an unexpected wait, or it may cause some people to leave when then see a long line. (4) When a customer reaches the counter, other economic decisions are made about what to order. From an economic perspective, these choices will be made after the customer compares the costs and benefits of possible choices.
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As the general price level in the country of Norweinshire rose, the average interest rate in the economy increased, thereby lowering aggregate expenditure. This relationship between price level, interest rate, and aggregate expenditure is referred to as the:
a. total price effect. b. interest rate effect. c. wealth effect. d. real-balance effect. e. income effect.
The AD curve will shift to the right if:
a. people become pessimistic about the future of the economy. b. there is a decrease in foreign income. c. the government decreases spending. d. the domestic price level decreases. e. the foreign price level increases.