The More Homogeneous Are Consumers' Preferences, the Less Product Variety

question 159

True/False

The more homogeneous are consumers' preferences, the less product variety will be observed.

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Definitions:

Substitutes

Products or services that can be used in place of each other, offering consumers choices in the marketplace.

Negative Relationship

A situation or condition in which an increase in one variable leads to a decrease in another variable.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.