If You Are Considering Buying Either an Apple Watch or a Samsung

question 428

Multiple Choice

If you are considering buying either an Apple Watch or a Samsung Gear S2,and you choose the Samsung only because the price is lower,then you consider

• A)the Apple Watch to be a normal good and the Samsung Gear S2 to be an inferior good.
• B)the Apple Watch to be an inferior good and Samsung Gear S2 to be a normal good.
• C)the Apple Watch and the Samsung Gear S2 to be complements.
• D)the Apple Watch and the Samsung Gear S2 to be substitutes.

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Definitions:

Disposable Income

Financial allocations for households' spending and saving activities post-income tax deductions.

Savings

Funds that are set aside for future use rather than being spent immediately, often placed in accounts that earn interest.

Consumption

The use of goods and services by households or individuals, typically referring to the final use that directly satisfies human needs or wants.

Disposable Income

Money freed up for households to allocate towards savings and spending after income tax removal.