Question

Teenagers spend billions of dollars on music downloads and video games. They have the ability, willingness, and authority to purchase these products and have a perceived need to do so. Teenagers are an example of a(n) ___ market.

1) Consumer
2) Labor
3) Financial
4) Stock

Answer 1

Teenagers who spend on music downloads and video games are part of a (Option 1)consumer market, characterized by their significant influence on market trends and social-driven purchase behavior.

Step-by-step explanation:

Teenagers who spend billions of dollars on music downloads and video games represent a ​consumer market​. They show a capability to influence market trends through their buying behavior, which is a fundamental characteristic of consumer markets. Unlike labor or financial markets, consumer markets consist of individuals and households that purchase goods and services for personal use. Teenagers fit this profile as they are actively engaging in transactions based on their interests and needs, such as music and video games.

Moreover, it is noteworthy that when it comes to buying clothes, teenagers often follow social norms, primarily influenced by the desire to fit in rather than to follow parents' rules or save money. This social dynamic further emphasizes their role as influential participants in the consumer market.