Question: A recent study explores the relationship between consumer search and income. The opportunity cost of search dependson income because 1 hour of search means 1

A recent study explores the relationship between consumer search and income. The opportunity cost of search depends on income because 1 hour of search means 1 less hour available for earning income. The study examines search behavior for liquid detergents, and shows that a doubling of income increases the cost of search and decreases the amount of searching by about 14 percent. In addition, consumer search on workdays is more costly and thus less extensive than on weekends.

A recent study explores the relationship between consumer search and income. The

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How does opportunity cost affect consumer search?

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Opportunity cost plays a significant role in consumer search behavior Opportunity cost refers to the cost of choosing one option over another particul... View full answer

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