According to the Substitution Effect, If the Price of a Product

question 42

Multiple Choice

According to the substitution effect, if the price of a product goes down

• A) the consumer will buy more of the good at the lower price than at a higher price, creating a downward sloping demand curve.
• B) the consumer will buy more of the good at a lower price than at a higher price, creating a horizontal demand curve.
• C) the consumer will not change the level of purchases of the good when the price changes, making the demand curve a vertical line.
• D) the real income of the consumer will increase, causing the consumer to want to buy more of the good, creating a downward sloping demand curve.

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Definitions:

Symbolic Fitting In

The concept where individuals use brands or products as symbols to align themselves with specific social groups or statuses.

Functional Benefits

The practical or utilitarian advantages that a product or service offers to its users, distinct from emotional or psychological benefits.

Collective Identity

The shared sense of belonging to a group, defined by mutual interests, values, cultural practices, or viewpoints, contributing to the cohesion and solidarity among its members.