New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Identify the scenario that exemplifies the bandwagon

    effect:
    A A rise in bread prices leads to decreased demand. Correct Answer Incorrect Answer
    B Consumers buy a new smartphone model because many others are buying it. Correct Answer Incorrect Answer
    C Luxury car demand remains unaffected by price changes. Correct Answer Incorrect Answer
    D Consumers purchase more generic brands during an economic downturn. Correct Answer Incorrect Answer
    E Increased supply of vegetables leads to lower prices. Correct Answer Incorrect Answer

    Solution

    The bandwagon effect occurs when people do something primarily because others are doing it, regardless of their own beliefs, which is illustrated by the scenario of buying a smartphone because many others are.

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