Homework Question on Public Good, Elasticity and Consumer Choice
- You must find an article that is related to public good, elasticity and consumer choice.
- Then, write a 1 page (double-spaced) paper discussing how the article relates to public good, elasticity and consumer choice.
- Make sure your article is relevant to the subject matter. Please provide the link of the article.
Homework Answer on Public Good, Elasticity and Consumer Choice
According to the article by McManus and Bennet, with respect to demand, positive reactions from consumers could emanate from an aspiration to take part in a public good, individual utility gain from acting charitably, or supposition that socially-associated merchandise are reasonably first-rate (McManus and Bennet 2-27). With an array of possible inspirations for their dealings, observable consumer choices for the merchandise could as well be intricate.
The study carried out where the field research at a nonprofit organization’s online shop was employed determine the way demand varies when consumer choice creates proceeds for charitable grounds. It was discovered that consumers react powerfully when their purchases yield small contributions by an unspecified exterior group, though reactions considerably weaker when the exterior donations involve a personal contributions that consumers commonly turn down.
On the whole, raising the prominence of fiscal inducements seems to weaken the reactions of consumers to charitable content. The article by McManus and Bennet also presents proof that the contribution pledges lessen price sensibility and have constructively long-standing results on demand (McManus and Bennet 2-27). This implies that, consumer choice to socially-associated products could be extremely sensitive to the manner in which an organization or nonprofit portrays the public goods gain of purchasing the merchandise.