Select the statement that correctly describes the dependence effect derived from John Kenneth Galbraith's ideas on consumer affluence.

Question

Quizplus · Accepted Answer

Galbraith's dependence effect suggests that consumer demand is largely created by the advertising and marketing efforts of producers, meaning that what consumers want is significantly influenced by what is available to them. This challenges the traditional economic assumption that supply responds to pre-existing consumer demand.

Select the Statement That Correctly Describes the Dependence Effect Derived