Why Do Many Consumers Sometimes Replace a Product That Still

question 38

Multiple Choice

Why do many consumers sometimes replace a product that still functions?

• A) desire for new features
• B) change in the environment
• C) change in the person's role
• D) All of the above

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Definitions:

Aggregate Output

A composite measure of all final goods and services produced in an economy during a given period; real GDP.

Aggregate Demand Curve

A curve that shows the relationship between the overall price level and the total demand for all goods and services in an economy.

Nominal Income

The total amount of money earned by an individual or entity before adjustments for inflation or deflation.

Leading Economic Indicators

Variables that predict, or lead to, a recession or recovery; examples include consumer confidence, stock market prices, business investment, and big-ticket purchases, such as automobiles and homes.