For Studying Demand Relationships for a Proposed New Product That

question 6

Multiple Choice

For studying demand relationships for a proposed new product that no one has ever used before,what would be the best method to use?

• A) ordinary least squares regression on historical data
• B) market experiments,where the price is set differently in two markets
• C) consumer surveys,where potential customers hear about the product and are asked their opinions
• D) double log functional form regression model
• E) all of the above are equally useful in this case

---

Definitions:

Vertical Integration

A strategy where a company expands its operations into different stages of production, often including the supply chain, to control costs and improve efficiency.