Suppose a Firm Has Had the Historical Sales Figures Shown

question 60

Multiple Choice

Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the naïve approach?

• A)$10,000,000
• B)$10,550,000
• C)$10,840,000
• D)$12,000,000

---

Definitions:

Supply

The total amount of a good or service available for purchase at any given price level in a given market.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.