When a falloff in usage of a product by some consumers causes others to stop purchasing the item there is
A) price leadership.
B) negative-sum game.
C) positive market feedback.
D) negative market feedback.

Question

Quizplus · Accepted Answer

This phenomenon is known as negative market feedback, which occurs when a decrease in demand for a product from one group of consumers causes other consumers to also stop purchasing the item. As a result, sales for the product decline, and the market feedback is negative. Choices A and C are not relevant to the situation described, and choice B is incorrect as it refers to a situation where the total value of the gains and losses in a market is negative.

When a Falloff in Usage of a Product by Some