In the Following Graph, Q_S and Q_D Represent the Supply

question 73

Multiple Choice

In the following graph, Q_S and Q_D represent the supply and the demand curves respectively. Refer to the graph to answer the question. If the market price is £30:

• A) the market is in equilibrium.
• B) consumers may begin to bid up the price in order to buy more of the product.
• C) there is a surplus in the market.
• D) no trades will occur in the market.

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Definitions:

Trial Stage

A phase in product adoption or marketing where consumers are given the opportunity to try a product or service before making a purchase decision.

Hierarchy of Effects

A model in marketing that describes the stages a consumer goes through, from awareness to knowledge, liking, preference, conviction, and finally the actual purchase.

Adoption

The process of starting to use something new or integrating a new idea, habit, or technology into use.

Sampling

The process of selecting a subset of individuals or items from a larger population for the purpose of making statistical analysis.