Purchasing power differences can account for differential in demand of products and services, and also provide an indication on differences in costs.

Question

Quizplus · Accepted Answer

Purchasing power differences mean that consumers in different regions or countries have different spending power due to differences in their currency value, cost of living, and income levels. These differences can lead to variations in demand for products and services, as well as variations in pricing due to differences in costs. Therefore, the statement is true.

Purchasing Power Differences Can Account for Differential in Demand of Products