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A few years ago, the government sponsored a program called Cash For Clunkers, which gave individuals an opportunity to trade in their old automobiles and
A few years ago, the government sponsored a program called "Cash For Clunkers", which gave individuals an opportunity to trade in their old automobiles and receive a $4500 credit from the dealership (funded by the federal government). Many people throughout the country took advantage of this deal and the demand for new cars increased. Ultimately, consumers understood that the program was for a limited time period and made the decision to buy within the window of opportunity. Effectively, they understood that in the future they would not be able to take advantage of the program. Which of the following determinants of demand did this scenario apply to? a. Population b. Consumer Expectations c. Consumer Trends d. Price of Related Products
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