One problem with using historical data to estimate demand is the
A) fact that people do not always buy what they need.
B) large number of interviews that must be conducted to gather information on buyers' intentions.
C) many variations in price necessary to measure changes in demand.
D) likelihood that the demand curve has shifted over the time period covered by the data.
E) need to have both price and quantity data to estimate demand.

Question

Quizplus · Accepted Answer

Historical data may not accurately reflect current demand conditions if the underlying factors affecting demand have changed over time, such as changes in consumer preferences or technology. Therefore, it is likely that the demand curve has shifted over the time period covered by the data, making it less reliable for estimating current demand.

One Problem with Using Historical Data to Estimate Demand Is