Part A)In general, which of the following methods is the most costly and risky i
ID: 1162864 • 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
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
Explanation / Answer
a) Market experiments are most costly and risky estimate of market demand. The answer is "B".
b) All the factors mentioned here affect the demand elasticity. Time of adjustment affect the demand, for example, any good in the short term is inelastic, the more substitute is available the more elastic its demand will be. If the good has a high share in the budget it will be more elastic. Similarly, goods with a high price and more elastic compared to cheaper goods.