Chapter 3, Problem 24AA

a)

To determine

Meaning of demographic.

Explanation of Solution

Demographic analysis is performed to know the socio-economic information about the people of an area. The data collected is used by governments, companies, and other institutions to make decisions.

For example, suppose a new company is being setup in a city. The company perform demographic analysis to know the type of people living there. Suppose it comes to know that share of young population is maximum. In this case, company will produce and sell things that are consumed by young generation.

Economics Concept Introduction

Introduction: Demographic means a particular group of people defined by criteria such as age, sex, education, and religion etc.

b)

To determine

Reason behind the value given to the demographic that belongs to the age group 14-19.

Explanation of Solution

Retailers value the demographic that contains people who spends more money. Young generation between age group 14 to 19 (mentioned in the cartoon)spends a lot of money. Hence, they are given more value by retailers.

Economics Concept Introduction

Introduction: Age group of 14-19 is of young population. They spend a lot of money on discretionary spending. Discretionary spending refers to the spending on extras for instance, spending on smartphone, entertainment, and video games etc.