Majority Rules

I have again found the chapter I have been reading very interesting.
An experiment was conducted where everyone involved was in the know, except the individual subject.  The task was to agree on what line was closest in length to the line being compared with.  For example line A may have been 8 cm long.  Lines B to F were various lengths with line C the one closest to in length to line A.  The group were asked to agree what line was closest in length to line A.  All but the subject were to agree that any line (say line F) was the one closest in length, even though they knew it was not.
What was found is that the smaller the number of participants the more likely the subject was to hold their ground and declare what was in fact the truth.  However when the number of participants was larger (say 9 or 10) the subject was more likely to yield to the group decision and be a part of a unanimous declaration that say line A and F were most alike even when they knew it was not.
What this showed big time was that fitting in is more important to many people than isolation for the group or culture.
One of the reasons I find this particularly interesting is I am seeing it more and more in society at the moment.  There seems to be a great almost halving of opinions and the winner is the one who can shout the loudest or bring the most influence to bare on the outcome despite the outcome being right or wrong.
To be honest this is one of the problems I have with democracy, though I maintain it is the best form of government we have.  The majority rules and right or wrong is not the issue but the opinion of the majority.
It reminds me of an ad I am seeing on Foxtel at the moment for a show coming up.  The government is against a violent terrorist organization.  The leader of the governments daughter joins the terrorist organization.  He is told by someone in the government something like “the measure of your belief is the price you are willing to pay.”
To me that stands true, not just in fictional stories.  Do I conform and remain silent or stand up at the price of ostracization or worse?