Which of the Following Is a Limitation of Demand Estimation

question 20

Multiple Choice

Which of the following is a limitation of demand estimation through price experimentation?

• A)Consumers have incentives to be less truthful in their reaction to price changes,which will provide flawed data.
• B)Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market.
• C)This approach is comparatively <>more expensive than the other approaches of demand estimation.
• D)There is no uniform result as the demand will differ,depending on whether customers anticipate that a price change is permanent or temporary.

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Definitions:

Fixed Price Contracts

Agreements where the service or product is provided for a set price, regardless of the actual cost to complete the project.

Qualified Supplier

A supplier that has been evaluated and meets all criteria and standards for providing goods or services to a company.

Cost Reimbursable Contracts

A type of contract where the seller is paid for all legitimate costs incurred plus an additional fee as profit, which can be fixed or a percentage of costs.

Scope Of Work

The detailed description of the work to be performed in a project, including the project's objectives, deliverables, and timelines.