An Increase in the Consumption of a Good Resulting from a Reduction

question 139

Multiple Choice

An increase in the consumption of a good resulting from a reduction in price that makes the good cheaper in relation to other goods is called the

• A) substitution effect.
• B) income effect.
• C) real balance effect.
• D) inelasticity effect.

---

Definitions:

Feature Bloat Barriers

Challenges associated with the excessive addition of features in a product that can lead to decreased usability.

Adding Value

Adding value refers to the process of enhancing a product or service before offering it to customers, thereby increasing its worth and desirability.

Trading Up

Adding value to the product (or line) through additional features or higher-quality materials.

Package Content

The items or materials included within a product's packaging, often detailed on labeling to inform consumers about what is contained inside.