Question

A firm selling televisions knows from marketing research that when consumers in developing countries reach on average a yearly income equivalent to $1,000 they are more likely to purchase one of their televisions. Such a low income is sometimes enough because ______.

A. consumers often opt to eat less or forgo health care in order to get a TV
B. governments in developing countries often subsidize necessities, leaving money for other items
C. most cultures highly value possessions such as televisions
D. most governments in developing countries pay for products like televisions for their citizens

Answer 1

Consumers in developing countries may prioritize owning a television over basic needs like food or healthcare when they reach an average yearly income of $1,000. The correct answer is A. consumers often opt to eat less or forgo health care in order to get a TV.

Step-by-step explanation:

The correct answer is A. consumers often opt to eat less or forgo health care in order to get a TV.

In developing countries, when consumers reach an average yearly income of $1,000, they are more likely to purchase a television. This is because people in low-income countries may prioritize owning consumer goods like televisions, even if it means sacrificing other basic needs like food or healthcare.

For example, if a person in a developing country earns $100 per month and the television costs $1,000, they may decide to save $100 each month for 10 months to purchase the TV. During this time, they may cut back on expenses like food or healthcare to save money for the television.