In the Basic 45-Degree Line Model, What Is the Effect

question 49

Multiple Choice

In the basic 45-degree line model, what is the effect of a decrease in the price level?

• A)The expenditure line will shift downward.
• B)The expenditure line will shift upward.
• C)There will be movement to the left on the expenditure line.
• D)There will be movement to the right on the expenditure line.

---

Definitions:

Positioning Product

The strategy of designing and representing a product or service to occupy a distinctive and appealing image in the minds of the target market.

Differentiators

Features or attributes of a product or service that set it apart from competitors in the eyes of the target audience.

Perceptual Map

A means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand.

Consumers

Consumers are individuals or organizations that purchase or use goods and services for personal or organizational needs.