A demand-estimating procedure in which a firm changes the price of its product to see the effect on sales is the
A) interview approach.
B) price extrapolation procedure.
C) direct market experiment.
D) derived demand method.
E) open market method.

Question

Quizplus · Accepted Answer

The demand-estimating procedure described is a direct market experiment, where the firm changes the price of its product and observes the effect on sales. The other options (interview approach, price extrapolation procedure, derived demand method, open market method) do not involve directly testing the relationship between price and sales in a market setting.

A Demand-Estimating Procedure in Which a Firm Changes the Price