The Substitution Effect and the Real-Income Effect Are Two Effects

question 89

Multiple Choice

The substitution effect and the real-income effect are two effects that happen when

• A) marginal utility increases.
• B) marginal utility decreases.
• C) total utility decreases.
• D) a price changes.
• E) total utility increases.

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Definitions:

Personal Selling Process

A series of steps undertaken by salespersons to sell a product directly to a consumer, involving prospecting, presenting, handling objections, and closing the sale.

Customer's Purchase

the act of buying products or services by a consumer, which involves the transfer of money for the ownership of goods or receipt of service.

Follow-up

The act of continuing a previously started conversation, interaction, or process to gather further information, provide additional assistance, or ensure completion.

Behaviorally Related Sales Objectives

Goals focused on modifying or influencing customer behavior to increase sales.