Which of the Following Statements About the 'Bottom of the Pyramid

question 6

Multiple Choice

Which of the following statements about the 'bottom of the pyramid' market is not open to challenge?

• A)The poor - 4 billion of them - earn less than $2/day
• B)The poor have no purchasing power and do not represent a viable market
• C)The poor are not brand-conscious
• D)The poor are unable to use and not interested in advanced technology

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Definitions:

Marginal Propensity

This measures the likelihood of an individual or entity to spend an additional unit of currency. Specifically, it assesses how changes in income affect spending or saving habits.

Average Propensity

The ratio of total spending (consumption or saving) to total income, indicating how income is distributed across different economic activities.

Marginal Propensity

The measure of how much consumption changes with a change in disposable income, indicating the proportion of additional income that is spent on consumption.

Consumption Spending

The total value of all goods and services consumed by households over a specified period.