Demand Analysis Quiz

Which of the following best describes demand analysis?

• The study of consumer preferences

• The analysis of consumer needs and desires

• The examination of the relationship between price and quantity demanded

• The study of supply chain logistics

What factor does NOT directly affect demand?

• Price of the good

• Consumer income

• Cost of production

• Tastes and preferences

Which concept explains the effect of a change in consumer income on the demand for goods?

• Price elasticity of demand

• Cross elasticity of demand

• Income elasticity of demand

• Marginal elasticity of demand

In demand forecasting, which technique uses past sales data to predict future demand?

• Qualitative forecasting

• Time-series analysis

• Simulation modeling

• Experimental research

What strategy is most appropriate when demand for a product is highly elastic?

• Increasing prices to boost revenues

• Reducing prices to increase quantity demanded

• Keeping prices stable to avoid market confusion

• Ignoring price changes and focusing on cost reduction

When substitutes are available, the demand for a product is typically more elastic.

• True

• False

Higher prices always lead to higher revenue for businesses.

• True

• False

Demand analysis helps businesses determine how external factors influence consumer behavior.

• True

• False

Cross-price elasticity measures the effect of a price change of one good on the demand for another good.

• True

• False

Demand forecasting is useful only in large corporations, not small businesses.

• True

• False