Through Word-Of-Mouth Communication, Consumers Look to Each Other for Product

question 120

True/False

Through word-of-mouth communication, consumers look to each other for product information and recommendations.

---

Definitions:

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to replace more expensive items with cheaper alternatives.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.