An Innovation Is More Likely to Diffuse More Quickly Throughout

question 45

True/False

An innovation is more likely to diffuse more quickly throughout an industry if it is perceived as worth imitating by competitors.

---

Definitions:

Revealed Preferences

A theory that determines preferences by observing consumer choices and behaviors, rather than through direct inquiry about preferences.

Bundle

A collection of goods or services that are sold together as a single package deal.

Weak Axiom

A principle in consumer theory stating that if a consumer prefers bundle A over bundle B when prices are constant, then the consumer will not choose B over A if the price of A decreases and B's price remains unchanged.

Revealed Preferences

A concept in economics that preferences of consumers can be inferred by observing their purchasing habits and behaviors.