A rise in national income is most likely to increase demand for which type of product first?
Correct answer: D. Luxury and discretionary products
- A. Products unavailable in local markets
- B. Essential products with fixed demand
- C. Products banned by government law
- D. Luxury and discretionary products
Explanation
Higher national income generally increases consumers' purchasing power, especially for luxury and discretionary goods. Essential demand may change less because people already need those goods.
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About The Business Environment
Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.
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