A Simple Statement of the Consumption Behavior Suggested in Our

question 92

Multiple Choice

A simple statement of the consumption behavior suggested in our model is that

• A)all income earned from wages is spent
• B)total income must be equal to wages plus profits
• C)social values and customs are the primary determinants of consumption spending
• D)spending increases by less than income
• E)people spend more and save more as their disposable income increases

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Definitions:

Sale Price

The final amount at which a product or service is sold to consumers.

Marked Up

Refers to an increase in the selling price of goods or services, typically to create a profit margin above the cost.

Operating Expenses

Costs that a business incurs through its normal business operations, such as wages, rent, and utilities.

Wholesaler

A person or company that sells goods in large quantities at low prices, typically to retailers.