Final answer:
The cost and quality of a product are indeed among the most important criteria when making purchases.
Step-by-step explanation:
True
The statement 'The cost and quality of the product are among the most important criteria by which purchases are made' is true. When making a purchase, buyers often consider both the cost and quality of the product. The price of a product can act as a signal of its quality, as buyers may assume that a higher-priced product is of better quality.
For example, when a buyer sees a gemstone or a used car that costs more, they may assume it is of higher quality, even without being an expert on gemstones or cars. Similarly, buyers often associate higher prices with better quality in restaurants, clothing stores, art galleries, and even when hiring professionals like lawyers.