In the Context of the Consumer Diffusion Process, What Is

question 147

Multiple Choice

In the context of the consumer diffusion process, what is the final group of consumers that make trial purchases of a new product called?

• A) innovators
• B) late majority
• C) early purchasers
• D) laggards

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Definitions:

Marginal Tax-Rate

The rate at which the next dollar of taxable income is taxed.

Substitution Effect

The change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution.

Income Effect

The change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and in a given time period.