Price Is the Determining Factor as to Whether a Good

question 119

True/False

Price is the determining factor as to whether a good is classified as a consumer product or a B2B product.

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Definitions:

Induced Consumption

The portion of consumer spending that changes in response to changes in disposable income.

Disposable Income

The sum of funds that individuals or families can allocate towards savings or expenditure once they've deducted income taxes.

Disposable Income

The liquidity pool available for households to channel into saving and spending after income tax deductions.

Induced Consumption

The part of consumer spending that increases when disposable income rises and decreases when disposable income falls.