Which of the Following Organizations Is Likely to Use the Multiple-Factor

question 134

Multiple Choice

Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential?

• A) a firm that manufactures auto parts
• B) a firm that provides facility management services to large offices
• C) a company that provides Web site development services for small businesses
• D) a company that manufactures diagnostic machines for hospitals
• E) a firm that manufactures fashionable clothes for teenagers

---

Definitions:

Cross-Price Elasticity

A gauge of the demand shift for one item in response to price adjustments of another item.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the degree of substitutability or complementarity between them.

Substitutes

Products or services that can replace or serve as alternatives to another, often influencing consumer choices and market competition.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.