One of the Disadvantages of Using Style as a Discriminator

question 53

True/False

One of the disadvantages of using style as a discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

---

Definitions:

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.

Consumption

The use of goods and services by households, affecting economic conditions and indicating economic health through consumer spending patterns.

Income

The monetary payment received by an individual or household for their services, investments, or transfer payments.