One of the propositions in Galbraith's theory of consumer demands is the notion that:

Question

Quizplus · Accepted Answer

Galbraith's theory of consumer demands includes the concept of "dependence effect," which suggests that people's desires and wants are constantly being created and influenced by advertisers and producers, so the urgency of wants does not diminish as more of them are satisfied. This is in contrast to classical economic theory, which assumes that people have rational preferences and that their desires are limited by a diminishing marginal utility.

One of the Propositions in Galbraith's Theory of Consumer Demands