Cell Phones Are Seen by Consumers to Differ in Quality

question 126

Multiple Choice

Cell phones are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility. Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price. What would cell phones be classified as?

• A)product goods
• B)convenience goods
• C)homogeneous shopping products
• D)heterogeneous shopping products

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.

Aggregate Household

The combined and total measure of all consumers in an economy, accounting for all spending and consumption.

Disposable Income

The amount of money that individuals or households have available to spend or save after income taxes have been deducted.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the amount that needs to be consumed to sustain a basic standard of living.