Test Market in Which a New Breakfast Cereal Is Offered

question 40

Multiple Choice

test market in which a new breakfast cereal is offered at different prices to determine the different levels of sales is an example of which type of marketing research?

• A) descriptive
• B) explanatory
• C) exploratory
• D) causal
• E) concrete

---

Definitions:

Consumer Surplus

The split between the sum consumers would ideally pay for a good or service and the sum they actually end up paying.

Producer Surplus

The discrepancy between the price at which sellers are prepared to offer a product and the actual selling price they obtain.

Market Failure

The failure of a market to be efficient; when the individual pursuit of self-interest leads to bad results for society as a whole.

Market Power

The ability of a producer to raise prices.