Which of the following is NOT an example of a descriptive characteristic used to define market segments in economics?

• A. Age
• B. Income level
• C. Market equilibrium price
• D. Consumer preferences

Answer: (C)

Verified step by step guidance

1. Step 1: Understand what market segmentation means. Market segmentation involves dividing a broad consumer or business market into sub-groups based on shared characteristics to better target products or services.
2. Step 2: Identify what descriptive characteristics are. These are observable and measurable traits such as age, income level, gender, or geographic location that help define different segments.
3. Step 3: Review each option to see if it fits as a descriptive characteristic. 'Age' and 'Income level' are clear demographic descriptors, and 'Consumer preferences' relate to behavioral characteristics, which are also used in segmentation.
4. Step 4: Recognize that 'Market equilibrium price' is an economic concept describing the price at which quantity demanded equals quantity supplied in a market, not a characteristic of consumers or segments.
5. Step 5: Conclude that 'Market equilibrium price' is NOT a descriptive characteristic used to define market segments because it relates to market outcomes, not consumer traits.