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Diversification Strategies Are Becoming More Popular as Organizations Are Finding

question 41

True/False

Diversification strategies are becoming more popular as organizations are finding it easier to manage diverse business activities.


Definitions:

Income Effect

A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).

Inferior Good

A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute a cheaper good for a more expensive one.

Income Effect

The alteration in a person's or an economy's earnings and the effect this alteration has on the demand for a product or service.

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