Which of the following is true of business markets?
A)The business marketer normally deals with far more but far smaller buyers than the consumer marketer does.
B)Business markets involve far less money and items than do consumer markets.
C)Business demand is derived demand as it ultimately derives from the demand for consumer goods.
D)A small percentage decrease in consumer demand can cause large increases in business demand.
E)The total demand for business products is much affected by price changes in the short and long run.

Question

Quizplus · Accepted Answer

Business demand is derived demand as it ultimately derives from the demand for consumer goods. Businesses buy goods and services in order to produce or deliver their own products or services which are demanded by consumers.

Answer: A 
 The business marketer normally deals with far more but far smaller buyers than the consumer marketer does. Often, a business marketer will have to deal with several departments or individuals within a company, each with specific needs and priorities, as opposed to a consumer marketer who typically focuses on a single buyer or household.

Answer: E 
 The total demand for business products is much affected by price changes in the short and long run. Businesses are often more price-sensitive than consumers when it comes to purchasing goods and services, and changes in prices can have a noticeable impact on their demand. This effect can be seen in both the short and long run.

The other options are incorrect. Business markets involve more money and items than consumer markets (option B) and a small percentage decrease in consumer demand does not typically cause large increases in business demand (option D).

Which of the Following Is True of Business Markets