Factors That Determine Consumers' Willingness and Ability to Pay for Products

question 51

Multiple Choice

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

• A) supply factors.
• B) demand factors.
• C) affordability factors.
• D) elasticity factors.
• E) macro environmental factors.

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Definitions:

Facilities

Physical buildings and structures that are equipped for a particular purpose, such as production, research, or services.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Raw Materials

The basic substances or components that are processed or combined to manufacture finished goods.

Work in Process

Inventory that includes all items that are currently being manufactured but are not yet completed products.