Competitors Are Strongly Motivated to React to New Product Introductions

question 37

Multiple Choice

Competitors are strongly motivated to react to new product introductions in their market when:

• A)the market is experiencing a low rate of growth.
• B)the new product represents a major threat to their market.
• C)the new product targets a niche markets.
• D)all of the answer choices.

---

Definitions:

Disposable Income

The amount of money a household or individual has available to spend or save after taxes have been deducted.

Government Expenditure

The total amount of money spent by the government on various services and investments.

Discretionary Fiscal Policy

Government policy that involves altering government spending and taxation to influence the economy, based on current economic conditions.

Automatic Stabilizers

Structural features of government spending and taxation that reduce fluctuations in disposable income, and thus consumption, over the business cycle.