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Part A)In general, which of the following methods is the most costly and risky i

ID: 1162849 • Letter: P

Question

Part A)In general, which of the following methods is the most costly and risky in estimating market demand?

Consumer surveys

Market experiments

Statistical demand analysis

Consumer focus group

Part B)

Which of the following is NOT the factor affecting how elastic a demand is?

Time of adjustment

Availability of close substitutes

Share in budget

Price of the good   

A.

Consumer surveys

B.

Market experiments

C.

Statistical demand analysis

.

Consumer focus group

Part B)

Which of the following is NOT the factor affecting how elastic a demand is?

A.

Time of adjustment

B.

Availability of close substitutes

C.

Share in budget

D.

Price of the good   

Explanation / Answer

a) "B"

Market experimentation is the most costly and risky in estimating market demand.

b) "C"

Share in the budget doesn't affect the elasticity but time of adjustment, availability of close substitute and the price of the good does affect it.