The Figure Given Below Shows the Consumption Functions of an Economy

question 31

Multiple Choice

The figure given below shows the consumption functions of an economy.
Figure 9.4

-Refer to the Figure 9.4. If the economy is in equilibrium at A, which of the following is most likely to occur if consumers expect a period of rapid economic expansion?

• A) Equilibrium will move from A to F.
• B) Equilibrium will move from A to C.
• C) There will be a new equilibrium disposable income at G.
• D) Equilibrium will remain at A.
• E) There will be a new equilibrium disposable income at E.

Understand niche marketing and its appeal to consumers with specialized needs.

Recognize the applicability of global segmentation.

Comprehend the use of perceptual mapping as a competitive analysis tool.

Discuss the challenges and strategies of market segmentation in international markets.

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Definitions:

Sales Refund Payable

Obligations to return funds received from customers due to returns or refunds of products or services.

Sales Returns

Transactions in which customers return previously purchased merchandise for a refund, store credit, or exchange.

Merchandise Inventory

Goods that a company owns and intends to sell as part of its regular business operations, usually in the retail sector.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, highlighting net profit or loss.