Multiple Choice
Which of the following best describes the concept where consumer purchasing demand affects business purchasing decisions?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Which type of product is usually purchased on the spur of the moment?
A
Durable goods
B
Capital goods
C
Impulse goods
D
Inferior goods
Verified step by step guidance1
Understand the definition of each type of good: Durable goods are items that last for a long time, like appliances or cars; Capital goods are goods used to produce other goods, like machinery; Inferior goods are goods for which demand decreases as income rises.
Recognize that 'Impulse goods' refer to products bought spontaneously without prior planning, often driven by immediate desire or temptation.
Recall that the question asks for the type of product usually purchased on the spur of the moment, which aligns with the concept of impulse buying.
Compare the options and identify that durable goods, capital goods, and inferior goods typically involve more deliberate purchasing decisions, unlike impulse goods.
Conclude that the correct answer is 'Impulse goods' because they are characterized by unplanned, spontaneous purchases.
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