Assume the Price of Nikes Decreases

question 76

Multiple Choice

Assume the price of Nikes decreases. As a result, consumers increase the quantity of Nikes purchased each year and purchase fewer Reeboks. This is an example of the:

• A) substitution effect.
• B) income effect.
• C) utility effect.
• D) consumption effect.

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Definitions:

Mass Production

is the manufacturing of large quantities of standardized products, often utilizing assembly lines or automated technology, to achieve economies of scale.

Mass Consumption

The large-scale purchasing and use of goods and services by the population.

Fordist Period

An industrial production model based on mass production and standardized products, named after Henry Ford, characterized by large-scale factory production and high wages.

Advertising

A promotional tool used to communicate and persuade potential customers about products, services, or ideas through various media channels, aiming to influence consumer behavior.