A Consumer Will Buy a New Product Rather Than an Existing

question 134

Multiple Choice

A consumer will buy a new product rather than an existing product

• A) when the MU/P of the new product is less than the MU/P of the existing product.
• B) when the substitution of the new product for the old product increases the consumer's total utility.
• C) only if the new product has a lower price than the existing product.
• D) only if the MU of the new product exceeds the MU of the existing product.

---

Definitions:

New Status

A term indicating an updated or changed position, condition, or standing of an individual, group, or entity within a social, economic, or relational context.

Virtual Communities

Are bounded patterns of interaction and exchange that exist online, independently of time and space.

Computer-Mediated Communities

Online communities formed through the use of computers and internet technologies, allowing people to communicate and share interests across geographical boundaries.

Total Institution

A concept describing a place of residence and work where a large number of similarly situated individuals, cut off from the wider community, live in an enclosed, formally administered setting.