Suppose the Wealth of Consumers Increases Substantially

question 78

Multiple Choice

Suppose the wealth of consumers increases substantially.How would this be reflected in the aggregate demand curve?  

• A) The aggregate demand curve would shift outward. 
• B) The aggregate demand curve would NOT change. 
• C) The aggregate demand curve would shift inward. 
• D) The aggregate demand curve would become vertical.

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Definitions:

Post-Purchase Processes

The series of steps and activities that occur after a consumer has bought a product, including evaluation of satisfaction and potential for repeat purchase.

Consumption Awareness

Consciousness regarding the impact of one’s consumption habits on economic, environmental, and social aspects.

Differentiated Marketing

A marketing strategy in which a company targets several market segments with a unique product or service offering for each.

Product Specialization

A strategy where a business focuses on the production and development of a particular product or range of products, often to achieve higher levels of efficiency and expertise.