A new startup was thinking of offering fruits and vegetables directly from 'farm to front door' for all residents in British Columbia. In order to understand what individuals were interested in purchasing, how much they would purchase, and at what price, they conducted a mail-out survey to all residents. They plotted the information they received on a demand curve. This showed management at the startup anticipated:
A)the total number of buyers for all products in a particular industry.
B)a maximum number of products consumers will buy at a given price.
C)the total sales for specified product lines, usually over a three-year-period.
D)marginal revenue obtained under specified customer demand conditions.

Question

Quizplus · Accepted Answer

The demand curve shows the relationship between the price of a product and the quantity demanded by consumers at that price. It helps businesses understand how much of a particular product consumers are willing to buy at a given price point, and can be used to determine the maximum number of products consumers will buy at a given price.

A New Startup Was Thinking of Offering Fruits and Vegetables