The Marginal Propensity to Save (MPS) Is

question 187

Multiple Choice

The marginal propensity to save (MPS) is

• A) the rate at which real savings changes over time.
• B) the percentage of real disposable income saved.
• C) the difference between the amounts of real disposable income consumed and saved.
• D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.

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Definitions:

Overbooking

The practice of selling or booking more of a service than what is actually available, under the assumption that there will be cancellations or no-shows.

Lost Revenue

Revenue that was not earned due to missed opportunities, such as not having enough inventory to meet demand.

Differential Pricing

The strategy of selling the same product to different customers at different prices based on market factors, demand, and customer’s willingness to pay.

Demand Segment

Refers to a group of potential customers who have similar needs and responses to marketing actions, which can shape how products or services are promoted to them.