Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes.
A) $6,500 million
B) $5,000 million
C) $75 billion
D) $7,500 million
E) $10,000 million

Question

Quizplus · Accepted Answer

The total market potential is calculated by multiplying the number of consumers (50 million) by the number of pairs each buys (3) and the price per pair ($50), resulting in $7,500 million.

Suppose an Individual Buyer Purchases Three Pairs of Shoes Each