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Last Summer, the Thompson Family Had to Decide Whether to Buy

Question 5

Multiple Choice

Last summer, the Thompson family had to decide whether to buy a new car to upgrade their one-year-old luxury car, go to Disney World, or put in a swimming pool. They chose the vacation. What does this decision best illustrate?


A) how competition can involve dissimilar products vying for discretionary income
B) how each of these products are essential items
C) how competition for essential items leaves limited discretionary funds for nonessentials
D) how discretionary spending decisions are made

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