According to the FTC, for a Producer to Call a Product

question 60

Multiple Choice

According to the FTC, for a producer to call a product "new," the product:

• A) must be no more than two months old.
• B) must have achieved brand insistence.
• C) must be entirely new or changed in a functionally significant or substantial respect.
• D) must have been changed in some way during the last year.
• E) None of these alternatives is correct.

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Definitions:

Price Volatile

Referring to how quickly and to what extent the price of a commodity or asset can change within a short period of time.

Elastic

Describes a situation in economics where the demand or supply of a good or service is sensitive to changes in price.

Necessity

An indispensable requirement or need for something; often something that is essential for survival or to carry out a specific task.

Luxury Good

A product or service that is considered to be of high quality and high price, often seen as a status symbol.