#RFB-11000117Reading: Fill in the BlanksAcademic,CoreHard
Consumption Pattern
Official Question Material
Prep: Varies
Differential rates of price change can also shape consumption patterns. To [blank] their needs and wants, consumers sometimes choose to [blank] spending on a particular product or service with spending on an alternative product or service in response to a [blank] price movement of the items. All other factors being equal, consumption expenditure volumes would be expected to rise more strongly on spending options subject to lower rates of price inflation.
Sample Answer & Audio Transcript
Differential rates of price change can also shape consumption patterns. To satisfy their needs and wants, consumers sometimes choose to substitute spending on a particular product or service with spending on an alternative product or service in response to a relative price movement of the items. All other factors being equal, consumption expenditure volumes would be expected to rise more strongly on spending options subject to lower rates of price inflation.
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