When the Economy Is Sluggish, Final Consumers Have Less Money

question 375

Multiple Choice

When the economy is sluggish, final consumers have less money to buy their favorite computer gadgets, and this causes touch-screen manufacturers to sell less product to computer makers like Apple. This illustrates the concept of:

• A) "Product" as potential customer satisfaction.
• B) derived demand.
• C) brand non-recognition.
• D) brand rejection.
• E) unsought products.

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Definitions:

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period of time.

Usury Laws

Usury laws are regulations governing the amount of interest that can be charged on loans, aimed at preventing exorbitant or unfair interest rates.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity to protect consumers from rapid price increases.

Price Floor

A minimum allowable price set above the equilibrium price, preventing the market price from falling below a certain level.