The Factor That Determines Whether a Product Is Classified as a Consumer

question 18

Multiple Choice

The factor that determines whether a product is classified as a consumer product or an industrial product is

• A) the end use of the product.
• B) the decision-making process used to purchase the good or service.
• C) who the buyer represents.
• D) whether the good is new or used.

---

Definitions:

Unit Elastic

A situation in which the quantity demanded or supplied changes by an equal percentage as the change in price.

Price Elasticity

A measure of how much the quantity demanded of a product changes in response to a change in the product's price.

Demand

The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.

Price Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly due to changes in its price. Highly elastic means a small price change makes a big difference in demand or supply.