Consumers' Expectations in Business Economics
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Questions and Answers

What is one factor that affects the demand for luxury goods according to the text?

  • Consumers' income level (correct)
  • Technological advancements
  • Geographic location
  • Political stability

    • How do changes in buyers' incomes affect the demand for products?

  • The demand may increase or decrease based on the products (correct)
  • They always increase demand
  • They have no impact on demand
  • The demand usually decreases

    • What plays a significant role in determining the demand for a product according to the text?

  • 'Thunder effect'
  • 'Rainbow effect'
  • 'Sunshine effect'
  • 'Snob effect' (correct)

    • Which type of goods command higher demand based on their modernity and fashion according to the text?

    <p>Goods with modern designs</p> Signup and view all the answers

    What should business managers recognize to assess current and future demand for their products?

    <p>Movements in macroeconomic variables affecting buyers' incomes</p> Signup and view all the answers

    How do consumers' tastes and preferences impact the demand for a commodity?

    <p>They can increase or decrease demand</p> Signup and view all the answers

    Which effect influences consumers to discard a product before full utilization and prefer currently fashionable goods?

    <p>'Demonstration effect'</p> Signup and view all the answers

    Why do luxury goods and prestige goods have increasing demand as income rises according to the text?

    <p>'Veblen effect' leads to increased demand for expensive goods</p> Signup and view all the answers

    What type of goods generally have greater demand, according to the text's discussion of modernity and fashion?

    <p>Goods considered modern and fashionable</p> Signup and view all the answers

    What factor can lead consumers to perceive a product as obsolete and prefer newer goods according to the text?

    <p>'Veblen effect'</p> Signup and view all the answers

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