If the Supply of a Normal Good Remains Unchanged but the Income

question 3

Multiple Choice

If the supply of a normal good remains unchanged but the income level of the consumer increases:

• A) the quantity demanded of the good falls.
• B) the supply curve for the good shifts to the left.
• C) the price of the good reduces.
• D) the equilibrium quantity of the good increases.

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Definitions:

Differentiated Marketing

A strategy where a company targets multiple market segments with a unique marketing strategy for each, rather than adopting a mass marketing approach.

Segmenting The Market

The method involves categorizing a wide market of current and prospective customers, both in the consumer and business spheres, into smaller segments that share common attributes.

Psychographic Variables

Characteristics of consumers, such as lifestyle, values, attitudes, and personality, used to understand and segment markets.

Demographic Variables

Characteristics of population segments used in market research and segmentation, such as age, gender, income, education level, and marital status.