Asked by Abigail Stewart on Jun 06, 2024
Verified
According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s) :
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
A) I only
B) I and II
C) III only
D) II and III
Consumer Demand
The desire and willingness of consumers to purchase goods or services at given prices, which can influence the production and pricing strategies of businesses.
John Kenneth Galbraith
An influential Canadian-American economist known for his books on the modern economy and critiques of private sector production.
- Examine the effects of creative and ethical factors on the advertising sector.
Verified Answer
AG
Analisa GarciaJun 07, 2024
Final Answer :
D
Explanation :
The assumption that consumers' wants originate in their personality is consistent with the theory of consumer demand, as is the assumption that the urgency of wants does not diminish as more are satisfied. The assumption that socialism will work in all societies, however, is not related to the theory of consumer demand and is a separate economic and political issue.
Learning Objectives
- Examine the effects of creative and ethical factors on the advertising sector.
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