Which of the following is a limitation of demand estimation through price experimentation? A)Consumers have incentives to be less truthful in their reaction to price changes,which will provide flawed data. B)Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market. C)This approach is comparatively more expensive than the other approaches of demand estimation. D)There is no uniform result as the demand will differ,depending on whether customers anticipate that a price change is permanent or temporary.

Question

Which of the following is a limitation of demand estimation through price experimentation? A)Consumers have incentives to be less truthful in their reaction to price changes,which will provide flawed data. B)Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market. C)This approach is comparatively <>more expensive than the other approaches of demand estimation. D)There is no uniform result as the demand will differ,depending on whether customers anticipate that a price change is permanent or temporary.

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The Answer of Which of the following is a limitation of demand estimation through price experimentation? A)Consumers have incentives to be less truthful in their reaction to price changes,which will provide flawed data. B)Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market. C)This approach is comparatively <>more expensive than the other approaches of demand estimation. D)There is no uniform result as the demand will differ,depending on whether customers anticipate that a price change is permanent or temporary.

Which of the Following Is a Limitation of Demand Estimation