Which One of the Following Changes Is Consistent with a Change

question 65

Multiple Choice

Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?

• A) An increase in disposable income taxes.
• B) An increase in interest rates
• C) A decrease in permanent disposable income.
• D) An increase in wealth.

Recognize the significance of reaching new markets and users through market modification.

Understand how creating new use situations contributes to market modification.

Identify examples of reducing product features or quality (downsizing) within product strategy.

Understand the impact of consumer perception on product positioning and repositioning strategies.

---

Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Psychodynamic Theory

A psychological perspective that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Social-Cognitive Learning Theory

A theory that emphasizes the importance of observational learning, imitation, and modeling in acquiring new behaviors, attitudes, and emotional reactions.

Humanist Theory

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.