Many Firms Use Technology to Gather Information on the Preferences

question 55

Multiple Choice

Many firms use technology to gather information on the preferences of consumers and their responses to changes in prices.This information is then used to adjust prices of the firms' goods and services.This practice is called

• A)price discovery.
• B)empirical research.
• C)yield management.
• D)econometrics.

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Definitions:

Price of Yogurt

The amount of money required to purchase a unit or quantity of yogurt in the market.

Equilibrium Price

The cost point where the amount of a product or service that buyers want matches the amount that sellers offer, leading to equilibrium in the market.

Supply Increases

A situation where the quantity of a good or service that producers are willing and able to offer for sale rises, due to factors like lower production costs or increased demand.

Demand Curve

An illustrated chart showing the connection between a product's price and the level of demand from buyers.