The Slope of a Budget Constraint

question 113

Multiple Choice

The slope of a budget constraint:

• A)represents the opportunity cost of the two goods relative to each other.
• B)represents the relative marginal utilities from consuming the two goods.
• C)measures the total utility the consumer gets from consuming the two goods.
• D)is the consumer's income level.

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Definitions:

Segmentation Variables

refer to the criteria or bases used in dividing a market into distinct subsets of consumers with common needs or characteristics, such as demographic, geographic, psychographic, and behavioral variables.

Purchase Frequency

The number of times a consumer buys a product or service within a given timeframe.

Market Segmentation

The practice of dividing a broad target market into subsets of consumers who have common needs and priorities, to design and implement strategies tailored to them.

Psychographically

An adverb relating to psychographics, the study of personality, values, opinions, attitudes, interests, and lifestyles of individuals or groups for marketing and other purposes.