Most of the Rules Regulating Advertising and Selling to Consumers

question 25

Multiple Choice

Most of the rules regulating advertising and selling to consumers are now found in:

• A)the Constitution.
• B)the Australian Consumer Law.
• C)the Trade Practices Act 1974 (Cth).
• D)the Australian Securities and Investment Commission Act 2001 (Cth).

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Definitions:

Demand

Represents the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Consumer Surplus

The contrast between the overall amount consumers are willing to pay for a good or service and the total they actually pay.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Consumer Surplus

The rift between what consumers are economically prepared to spend on a service or product and their actual spending.